Tetrene Fliers Company Produces Model Airplanes

question 174

Multiple Choice

Tetrene Fliers Company produces model airplanes.During the month of November, it produced 2,500 planes.The actual labor hours were 9 hours per plane.Its standard labor hours are 12 hours per plane.The standard labor rate is $8 per hour.At the end of November, Tetrene Fliers found that it had a favorable labor rate variance of $9,000. ​
What was Tetrene Fliers' total labor variance?

• A) $610,000 F
• B) $69,000 F
• C) $723,500 U
• D) $41,500 U

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Definitions:

Operating Activities

Activities related to the day-to-day business operations, including cash flows from selling goods and services, and paying for expenses.

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Indirect Method

Indirect Method is a way of preparing the cash flow statement where net income is adjusted for non-cash transactions, changes in working capital, and other items to calculate cash flow from operating activities.