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Dover Enterprises Recently Used 14,000 Labor Hours to Produce 7,500

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Dover Enterprises recently used 14,000 labor hours to produce 7,500 completed units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The company's actual payroll cost amounted to $158,200. If the standard labor cost per hour is $11, Dover's labor rate variance is:


Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Negative Thinking

A cognitive process that involves focusing on the worst aspects of a situation, expecting the worst, and viewing oneself and the world with pessimism.

Biases

Inclinations or prejudices for or against one person or group, especially in a way considered to be unfair.

Evidence

Information or signs indicating whether a belief or proposition is true or valid.

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