Cornell Company Had the Following Information Available for Its Specialty

question 72

Multiple Choice

Cornell Company had the following information available for its specialty product:
Standards for one unit of product:
Direct Materials: 5 pounds at $2 per pound
Direct Labor: 0.50 hour at $16 per hour
Materials and Labor Used to produce 8,500 units:
Direct Materials: 46,000 pounds at $3 per pound
Direct Labor: 4,000 hours at ? per hour
If the Direct Labor Price Variance is $4,600 Unfavorable,what is the actual labor rate per hour?

• A) $16.00
• B) $16.50
• C) $17.10
• D) $17.15

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Definitions:

Hyponychium

Thickened portion of the stratum corneum under the free edge of the nail.

Cuticle

The outer layer of living tissue, especially in plants, acting as a protective barrier. In humans and animals, it often refers to the outer layer of skin or the protective layer around the nail or hair.

Eponychium

Outgrowth of the skin that covers the proximal and lateral borders of the nail; also called cuticle.

Stratum Corneum

The outermost layer of the epidermis, consisting of dead cells (corneocytes) that provide a barrier against infection and environmental stress.