Cabot Company Collected the Following Data Regarding Production of One

question 52

Multiple Choice

Cabot Company collected the following data regarding production of one of its products. Compute the direct labor cost variance.

• A) $53,500 unfavorable.
• B) $40,500 favorable.
• C) $53,500 favorable.
• D) $13,000 unfavorable.
• E) $40,500 unfavorablE.Actual units at actual cost = $1,093,500

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Definitions:

Materials

Physical substances or components used in the production of goods or in the execution of projects and services.

Workstation

A specific area or desk equipped with the necessary tools and technology for an individual to perform their job tasks.

Improve Workflow

To make enhancements in the process or set of processes through which work is accomplished, aiming for greater efficiency.

Breakeven Point

The level of production or sales at which total costs equal total revenue, meaning there is no profit or loss.