A Job Was Budgeted to Require 3 Hours of Labor

question 83

Multiple Choice

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.
-What is the total labor cost variance?

• A) $9,000 unfavorable.
• B) $2,000 unfavorable.
• C) $8,000 unfavorable.
• D) $6,000 unfavorable.
• E) $3,000 unfavorable.

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Definitions:

Aldosterone

A hormone produced by the adrenal glands that helps regulate blood pressure by controlling sodium and potassium levels in the blood.

Parathyroid Hormone

A substance secreted by the parathyroid glands that controls the amount of calcium in the bloodstream.

Bone Resorption

The process by which osteoclasts break down bone tissue, releasing minerals into the blood and leading to a decrease in bone density.

Inferior Good

A good that has a negative income effect.