The Following Labor Standards Have Been Established for a Particular

question 146

Multiple Choice

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month:
-What is the labor rate variance for the month?

• A) $160 U
• B) $160 F
• C) $480 U
• D) $480 F

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Definitions:

Retail Method

An accounting method used to estimate inventory value by applying a cost-to-retail price ratio, based on the beginning inventory plus purchases, less the sales at retail.

Inventory Costing

The method used to value and account for inventory, including costs of purchase, production, and conversion.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated after considering the cost of goods sold and any new purchases.

Inventory Management

The process of ordering, storing, using, and selling a company's inventory. This includes the management of raw materials, components, and finished products, as well as warehousing and processing such items.