Data on Goodman Company's Direct-Labor Costs Are Given Below

question 54

Multiple Choice

Data on Goodman Company's direct-labor costs are given below: What was Goodman's standard direct-labor rate?

• A)$3.54.
• B)$3.80.
• C)$4.00.
• D)$5.80.

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Definitions:

Direct Materials Price

The cost of raw materials and components required for the manufacture of a product.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost, used in manufacturing and budgeting.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit of material.