During October, 10,000 Direct Labor Hours Were Worked at a Standard

question 1

Multiple Choice

During October, 10,000 direct labor hours were worked at a standard cost of $10 per hour.If the direct labor rate variance for October was $4,000 unfavorable, the actual cost per direct labor hour must be

• A) $10.40.
• B) $10.00.
• C) $9.60.
• D) $9.20.

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Definitions:

Ending Inventory

The cumulative worth of merchandise ready for sale when an accounting period concludes.

Direct Materials

Raw materials that can be directly attributed to the production of goods, forming an essential component of finished products.

Budgeted Sales

An estimate of the sales revenue a company expects to achieve for a certain period, often used for planning and control purposes.

Beginning Inventory

The value of all the inventory that a company has at the start of an accounting period, before any purchases or sales have been made.