During January, 7,000 Direct Labor Hours Were Worked at a Standard

question 86

Multiple Choice

During January, 7,000 direct labor hours were worked at a standard cost of $20 per hour.If the direct labor rate variance for January was $17,500 favorable, the actual cost per direct labor hour must be

• A) $17.50.
• B) $20.00.
• C) $22.50.
• D) $25.00.

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Definitions:

Global Competition

The dynamic and multifaceted competitive landscape among businesses operating on a worldwide scale.

Free Trade

Worldwide trading conducted without interference through tariffs, quotas, or restrictions, following its inherent course.

Accounting Profits

The net income of a company calculated by subtracting total expenses from total revenues, following accounting rules.