AirSoar Company Produces Model Airplanes

question 120

Multiple Choice

AirSoar Company produces model airplanes. During August, the company produced 1,000 planes. The actual labour hours were 10 hours per plane. The company's standard labour hours are 15 hours per plane. The standard labour rate is $12 per hour. At the end of August, AirSoar found that it had a favourable labour rate variance of $7,500.
-Refer to the Figure.What was AirSoar's total labour variance?

• A)$52,500 F
• B)$55,000 F
• C)$65,000 F
• D)$67,500 F

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Definitions:

Moral Leader

An individual who prioritizes ethical standards and values in guiding their actions and decision-making processes within an organization.

Free Riding

Occurs when individuals benefit from resources, goods, or services without paying for them, often in the context of public goods.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are accessible to all members of a society and one individual's consumption does not reduce availability to others.

Subsidize

The act of providing financial assistance to individuals, businesses, or industries to support or promote economic activities.