Assume Martin Guitar Company Has a Standard of 3 Hours

question 141

Multiple Choice

Assume Martin Guitar Company has a standard of 3 hours of direct labor per unit produced and $20 per hour for the labor rate.During last period,the company used 24,000 hours of direct labor at a $456,000 total cost to produce 6,000 units.Compute the direct labor rate and efficiency variances.

• A) Rate variance: $24,000 unfavorable; Efficiency variance: $120,000 favorable.
• B) Rate variance: $24,000 favorable; Efficiency variance: $120,000 unfavorable.
• C) Rate variance: $96,000 favorable; Efficiency variance: $96,000 unfavorable.
• D) Rate variance: $120,000 favorable; Efficiency variance: $24,000 unfavorable.
• E) Rate variance: $120,000 unfavorable; Efficiency variance: $24,000 unfavorable.

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Definitions:

B Cell

A type of white blood cell crucial for the immune system, involved in producing antibodies to combat infections.

Red Bone Marrow

The type of bone marrow that is involved in the production of red blood cells, white blood cells, and platelets.

Antigens

Substances or molecules that, when introduced into the body, trigger an immune response leading to the production of antibodies.

Cytokines

Small proteins important in cell signaling, with roles in the immune system, including mediating and regulating immunity, inflammation, and hematopoiesis.