The Following Information Describes a Company's Usage of Direct Labor

question 73

Multiple Choice

The following information describes a company's usage of direct labor in a recent period. The direct labor efficiency variance is:

• A) $28,000 unfavorable.
• B) $28,000 favorable.
• C) $45,000 unfavorable.
• D) $45,000 favorable.
• E) $17,000 unfavorablE.

---

Definitions:

Spot Rate

The current market price at which a particular asset, such as currency or commodity, can be bought or sold for immediate delivery.

Discount

A reduction applied to the regular price of goods or services or the amount by which the present value of future cash flows is reduced for discounting purposes.

Foreign Currency

Currency used in a country other than one’s own, representing a medium of exchange for goods and services in that foreign country.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specific period.