Taccone Corporation Makes a Product That Has the Following Direct

question 285

Multiple Choice

Taccone Corporation makes a product that has the following direct labor standards: In February the company produced 4,100 units using 1,120 direct labor-hours. The actual direct labor rate was $20.40 per hour. The labor efficiency variance for February is:

• A)$2,244 F
• B)$2,244 U
• C)$2,200 U
• D)$2,200 F

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Definitions:

Variable Manufacturing Cost Per Unit

The total variable costs involved in producing one unit of a product.

Expected Costs

Anticipated or forecasted costs for a project, activity, or production based on historical data, current conditions, and future projections.

Total Fixed Cost

The aggregate sum of all expenses within a company that remain constant regardless of the level of production or sales.

Fixed Cost Per Period

Costs that do not vary with the level of production or sales within a certain range and time frame, such as rent or salaries.