A Company Has a Standard of 2 Hours of Direct

question 86

Multiple Choice

A company has a standard of 2 hours of direct labor per unit produced and $18 per hour for the labor rate. During last period, the company used 9,500 hours of direct labor at a $152,000 total cost to produce 4,000 units. Compute the direct labor rate and efficiency variances.

• A) Rate Variance: $19,000 unfavorable; Efficiency Variance: $27,000 favorable.
• B) Rate Variance: $63,829 unfavorable; Efficiency Variance: $99,000 unfavorable.
• C) Rate Variance: $152,000 favorable; Efficiency Variance: $99,000 unfavorable.
• D) Rate Variance: $19,000 favorable; Efficiency Variance: $27,000 unfavorable.
• E) Rate Variance: $152,000 unfavorable; Efficiency Variance: $99,000 favorable.

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Definitions:

Affections

The feelings of fondness or liking directed toward someone or something.

Mother

A female parent who may also play a pivotal role in child-rearing and emotional nurturing.

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Behavior intended to harm or intimidate others, which can be physically or verbally expressed.

Defense Mechanism

Psychological strategies unconsciously adopted to protect oneself from anxiety by distorting reality and hiding the source of anxiety from themselves.