Reference: 21_06
the Following Information Describes a Company's Use of Direct

question 64

Multiple Choice

Reference: 21_06
The following information describes a company's use of direct labor in a recent period:
$\begin{array}{llr} \text { Actual hours used} &45,000\\ \text { Actual rate per hour} &\$15\\ \text { Standard rate per hour} &\$14\\ \text { Standard hours for units produced} &47,000\\\end{array}$

-The direct labor cost variance is:

• A) $28,000 favorable
• B) $28,000 unfavorable
• C) $45,000 unfavorable
• D) $45,000 favorable
• E) $17,000 unfavorable

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Definitions:

Derived Demand

Demand that exists not for the good or service itself, but for the goods or services produced by it. This demand is dependent on the demand for another product or service.

Hair Stylist

A professional who specializes in cutting, coloring, and styling hair to improve or maintain a person's appearance.

Salon Owner

An individual who owns and manages a salon, responsible for its operational, financial, and administrative aspects.

Marginal Revenue Product

Marginal Revenue Product measures the additional revenue generated from employing one more unit of a resource.