Using the Labor Time Standard of 0 A) $4,500 (U)
B) $4,500 (F)
C) $3,960 (F)
D)

question 61

Multiple Choice

Using the labor time standard of 0.5 labor hour per unit and a labor cost standard of $10 per labor hour for a 10 pound bag of chocolate and the following actual cost and usage data,compute the direct labor rate variance. $\begin{array}{ll}\text { Direct labor hours used } & 4,950 \text { hours } \\\text { Total cost of direct labor } & \$ 53,460 \\\text { Number of good units produced } & 9,000 \text { units }\end{array}$

• A) $4,500 (U)
• B) $4,500 (F)
• C) $3,960 (F)
• D) $3,960 (U)

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Definitions:

Packaging Department

A division in a manufacturing facility focused on the packaging of products for storage or shipment.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, expressed in terms of the amount of finished goods.

Transferred In Costs

Expenses associated with products or components that are moved from one process, department, or location to another within a manufacturing operation.

FIFO Costing

An inventory valuation method that assumes the first items purchased or produced are the first ones sold, affecting the cost of goods sold and ending inventory.