Accurate Tax Returns Budgets Two Direct Labor Hours for Every

question 70

Multiple Choice

Accurate Tax Returns budgets two direct labor hours for every tax return that it prepares,at a standard cost of $34 an hour.During the most recent year,520 returns were completed with the labor cost totaling $18,000.The actual labor cost was $34.62 per hour during that period.The actual number of labor hours was 1200.What is the direct labor cost variance?

• A) $320 F
• B) $40,800 U
• C) $744 U
• D) $40,800 F

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Definitions:

Compound Annual Rate

The annualized average rate of growth of an investment over a specified time period, taking into account the effect of compounding.

Annual Dividend

The total dividend payment a company distributes to its shareholders for each share they hold over the course of a year.

Annual Dividend

The annual dividend is the total amount of dividends that a company pays to its shareholders in one fiscal year.

Indefinitely

For an unlimited or unspecified period of time, often used in the context of contracts or agreements.