Harrison, Inc

question 107

Multiple Choice

Harrison, Inc., has computed direct labor standards for the manufacture of its product to be 4 hours of labor per product at a cost of $15 per hour. During March, Harrison produced 45 products in 190 hours and incurred direct labor costs of $2,720. Harrison's direct labor efficiency variance was

• A) $20 (U).
• B) $130 (U).
• C) $150 (U).
• D) $130 (F).

---

Definitions:

Company Rules

The formal guidelines and regulations that govern behavior and procedures within an organization.

Goodwill

The intangible asset that arises when a business is valued at more than its tangible assets, often due to reputation, brand, or customer loyalty.

Informal Work Culture

A workplace environment characterized by a casual approach to professional interactions, dress code, and office policies, emphasizing comfort and personal expression.

Communications Executive

A senior-level professional responsible for overseeing an organization's internal and external communication strategy, including media relations and messaging.