Assembly Line Workers at Thompson Manufacturing Worked a Total of 12,000

question 126

Multiple Choice

Assembly line workers at Thompson Manufacturing worked a total of 12,000 direct labor hours to produce 36,000 units. The standard for producing one unit is 15 minutes at a wage rate of $10.70. If the actual wage rate was $10.50 per direct labor hour, Thompson’s direct labor rate variance is

• A) $2,400 favorable
• B) $4,800 unfavorable
• C) $9,450 favorable
• D) $4,500 unfavorable

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Definitions:

Share Of The Blame

The extent of responsibility that an individual or group holds in causing a particular negative outcome.

Founders' Creativity

pertains to the innovative and creative thinking skills that founders of companies apply to solve problems and develop new products or services.

Entrepreneurial Transition

The process through which an entrepreneur shifts or adapts their role within the company as it grows or changes.

Erosion

The process of gradual wearing down or destruction of something, often referring to natural processes affecting land or material objects.