The Payne Corporation's Actual Output for a Period Was Assigned

question 187

Essay

The Payne Corporation's actual output for a period was assigned the standard labour cost of $25,500. If the company had an unfavourable direct labour price variance of $1,800 and a favourable direct labour efficiency variance of $750, what was the total actual cost of direct labour incurred during the period?

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Definitions:

Break-Even Point

The financial position at which cost and revenue are equal, resulting in neither profit nor loss.

Break-Even Point

The point at which total costs and total revenues are equal, meaning no profit or loss occurs.

Bearish

A market sentiment indicating an expectation that stock prices will decline.

Put

An options contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.