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

question 149

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. If the actual wage rate was $10.50 per direct labor hour, Thompson’s direct labor rate variance is

• A) $6,000 favorable
• B) $6,000 unfavorable
• C) $4,500 favorable
• D) $4,500 unfavorable

Understand the basics of working capital management and its significance in financial management.

Identify various sources of short-term financing and understand their uses and costs.

Identify and classify types of assets and liabilities in a business context.

Understand the concept and usage of commercial paper and other short-term financing instruments.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in its price.

Golf Courses

Large areas of land designed for the sport of golf, featuring 9 or 18 holes where players aim to hit balls into each hole with the fewest number of strokes.

Movie Theaters

Entities or venues that specialize in the commercial showing of films to the public for entertainment.

Income Elasticity

A measure of how the demand for a good or service changes in response to a change in consumers' income.