Fabiano Corporation Makes a Product Whose Direct Labor Standards Are

question 5

Multiple Choice

Fabiano Corporation makes a product whose direct labor standards are 0.5 hours per unit and $23.00 per hour. In February the company produced 3,300 units using 1,640 direct labor-hours. The actual direct labor cost was $38,540.
-The labor rate variance for February is:

• A)$825 U
• B)$820 U
• C)$820 F
• D)$825 F

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Definitions:

Sales Interaction

The process and dynamics of communication between a salesperson and a prospective or current customer, aimed at promoting or selling a product or service.

Purchase Cycle

The sequence of stages that customers go through from recognizing a need, considering a purchase, making the purchase, and post-purchase behavior.

Value Added

The enhancement a company gives its product or service before offering the product to customers, increasing its value.

Expectancy Disconfirmation Model

A consumer satisfaction framework that compares actual product or service performance against pre-consumption expectations.