Prince Inc What Was the Standard Direct Labor Rate?
A) $3

question 56

Multiple Choice

Prince Inc.has the following information:
$$\begin{array} { | l | r | l | } \hline \text { Total payroll } & \$ 165,300 & \\\hline \text { Standard direct labor hours } & 45,000 & \\\hline \text { Labor rate variance } & \$ 8,700 & \mathrm {~F} \\\hline \text { Labor mix variance } & \$ 4,000 & \mathrm {~F} \\\hline \text { Labor yield variance } & \$ 2,000 & \mathrm {~F} \\\hline\end{array}$$ What was the standard direct labor rate?

• A) $3.50.
• B) $3.80.
• C) $4.00.
• D) $5.80.

---

Definitions:

Monopoly

A market structure characterized by a single seller or producer dominating the entire market, often resulting in limited consumer choice and higher prices.

Downward Sloping

Describes a line on a graph that depicts a decrease in value or quantity as another variable increases, commonly seen in demand curves.

Demand Curve

A graph representing the relationship between the price of a good and the amount of it that consumers are willing and able to purchase at various prices.

Perfectly Inelastic

A situation in demand or supply where a change in price does not result in any change in the quantity demanded or supplied, represented by a vertical curve.