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

question 5

Multiple Choice

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:

• A) $4,200U.
• B) $4,000F.
• C) $4,300U.
• D) $4,300F.
• E) none of the other answers are correct.

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Definitions:

Control of Business

Refers to the authority or power to manage the operations, decisions, and policies of a company or organization.

Split Profits

The distribution of earnings or gains between partners, stakeholders, or businesses according to agreed-upon percentages or criteria.

Sole Proprietorship

A business owned and operated by a single individual where there is no legal distinction between the owner and the business entity.

Special Batch

A unique production run of goods, often made to fulfill a specific requirement or order.