Reference: 21_05 A Job Was Budgeted to Require Three Hours of Labor

question 91

Multiple Choice

Reference: 21_05
A job was budgeted to require three hours of labor per unit at $8 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.
-What is the labor rate variance?

• A) $22,000 unfavorable
• B) $16,000 unfavorable
• C) $6,000 unfavorable
• D) $16,000 favorable
• E) $22,000 favorable

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Definitions:

Fatty Acids

Long hydrocarbon chains that are components of lipids, such as fats and oils, important for energy storage and cell structure.

Hydrogen Peroxide

A chemical compound (H2O2) used as an oxidizer, bleaching agent, and antiseptic.

Microtubules

Cylindrical structures made of tubulin proteins that are part of the cytoskeleton in all eukaryotic cells and are involved in cell division, movement, and shape maintenance.

Eukaryotic Cell Division

Processes, including mitosis and meiosis, through which eukaryotic cells divide, ensuring accurate distribution of chromosomes to daughter cells.