Fletcher Company Collected the Following Data Regarding Production of One

question 67

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products. Compute the total direct labor cost variance. $\begin{array}{llr} \text { Direct labor standard (2 hrs. @ \$12.75/hr.) } &\$25.50& \text { per finished unit } \\ \text { Actual direct labor hours} &81,500& \text {hrs. } \\ \text {Actual finished units produced } &40,000& \text {units } \\ \text { Actual cost of direct labor } &\$1,100,250\\\end{array}$

• A) $19,125 favorable.
• B) $61,125 unfavorable.
• C) $80,250 favorable.
• D) $61,125 favorable.
• E) $80,250 unfavorable.

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Definitions:

Marketing Activities

Actions undertaken by a company to promote and sell its products or services, including advertising, sales promotions, and public relations.

Marketing Department

A division within a company responsible for promoting products or services, brand management, and market research.

Crossover SUV

A type of sports utility vehicle that features a unibody construction, blending features of passenger cars with those of traditional SUVs for increased efficiency and comfort.

Satisfied Needs

The fulfillment of a consumer's requirements or desires through the consumption of products or services.