Davidson Corporation Makes a Product That Has the Following Direct

question 147

Multiple Choice

Davidson Corporation makes a product that has the following direct labor standards:
In September the company produced 4,900 units using 2,210 direct labor-hours. The actual direct labor rate was $22.40 per hour.

-The labor rate variance for September is:

• A)$1,470 U
• B)$1,326 U
• C)$1,326 F
• D)$1,470 F

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Definitions:

Standards

Established norms or requirements designed to ensure products, services, and processes meet specific criteria for quality and performance.

Objectives

Specific, measurable goals set by an individual or organization in pursuit of their larger aims or missions.

Organization's Performance

A measure of how well an organization achieves its set objectives and goals through efficient and effective use of resources.

Local Supplier

A business that provides products or services to another company within the same geographic region, often to minimize logistics costs and support the local economy.