Bartels Corp

question 52

Multiple Choice

Bartels Corp.produces woodcarvings.It takes two hours of direct labor to produce a carving.Bartels' standard labor cost is $12 per hour.During August,Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376.What is Bartels' labor cost variance for August?

• A) $10,376 unfavorable
• B) $2,104 unfavorable
• C) $2,104 favorable
• D) $12,480 unfavorable
• E) $ 12,480 favorable

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Definitions:

Specialization

The process of focusing on and becoming expert in a specific area of work, study, or business, often leading to increased efficiency and productivity.

Economies of Scale

Cost advantages obtained due to the scale of operation, with cost per unit of output generally decreasing with increasing scale.

Side Agreement

A supplemental agreement made in addition to a primary contract or treaty, often outlining specific provisions not covered in the main document.

Union Representation

The act of a labor union acting as an intermediary between its members and their employer, negotiating terms of employment and advocating for workers' rights.