DT Co Produces Picture Frames

question 69

Essay

DT Co. produces picture frames. It takes 3 hours of direct labor to produce a frame. DT's standard labor cost is $11.00 per hour. During March, DT produced 4,000 frames and used 12,400 hours at a total cost of $133,920.
(a) What is DT's labor rate variance for March?
(b) What is DT's direct labor efficiency variance for March?
(c) Record the labor costs and the variances for DT.

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Definitions:

Criticism

The practice of analyzing, judging, and/or evaluating something, often with the intention of revealing faults or areas of improvement.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to perform if they believe that their efforts will lead to desired performance and reward.

Victor Vroom

A psychologist recognized for formulating the expectancy theory of motivation, which suggests that individual motivation to perform is influenced by expectations of reward and achievable outcomes.

Hygiene Factors

Elements related to job dissatisfaction according to Herzberg's motivation-hygiene theory, including company policy, supervision, salary, interpersonal relations, and working conditions.