A Company Has a Standard of 2 Hours of Direct

question 8

Multiple Choice

A company has a standard of 2 hours of direct labor per unit produced and $18 per hour for the labor rate.During last period,the company used 9,500 hours of direct labor at a $152,000 total cost to produce 4,000 units.Compute the direct labor rate and efficiency variances.

• A) Rate variance: $19,000 unfavorable; Efficiency variance: $27,000 favorable.
• B) Rate variance: $63,829 unfavorable; Efficiency variance: $99,000 unfavorable.
• C) Rate variance: $152,000 favorable; Efficiency variance: $99,000 unfavorable.
• D) Rate variance: $19,000 favorable; Efficiency variance: $27,000 unfavorable.
• E) Rate variance: $152,000 unfavorable; Efficiency variance: $99,000 favorable.

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Definitions:

Renal Fraction

Portion of the cardiac output that flows through the kidneys; averages 21%.

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute.

Actively Transported

Refers to the movement of substances across cell membranes using energy, typically against their concentration gradient.

Glomerulonephritis

A form of kidney inflammation that affects the tiny filters (glomeruli) responsible for waste filtration.