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Assume the following information appears in the standard cost card for a business that makes only one product: Standard Quantity or Hours 5 pounds 2 hours 2 hours Standard Price or Rate $11.00 per pound $17.00 per hour $ 3.00 per hour Standard Cost Direct materials Direct labor Variable manufacturing overhead $55.00 $34.00 $ 6.00 During the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. • All of the material that was purchased was used to produce 3,900 units. • 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct labor spending variance? Multiple Choice $600 F $600 U $3,300 F $3,300 U

Assume the following information appears in the standard cost card for a business that makes only one product: Standard Quantity or Hours 5 pounds 2 hours 2 hours Standard Price or Rate $11.00 per pound $17.00 per hour $ 3.00 per hour Standard Cost Direct materials Direct labor Variable manufacturing overhead $55.00 $34.00 $ 6.00 During the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. • All of the material that was purchased was used to produce 3,900 units. • 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct labor spending variance? Multiple Choice $600 F $600 U $3,300 F $3,300 U

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume the following information appears in the standard cost card for a business that makes only one product: Standard Quantity or Hours 5 pounds 2 hours 2 hours Standard Price or Rate $11.00 per pound $17.00 per hour $ 3.00 per hour Standard Cost Direct materials Direct labor Variable manufacturing overhead $55.00 $34.00 $6.00 During the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. • All of the material that was purchased was used to produce 3,900 units. • 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct labor spending variance? Multiple Choice $600 F $600 U $3,300 F $3,300 U
Transcribed Image Text:Assume the following information appears in the standard cost card for a business that makes only one product: Standard Quantity or Hours 5 pounds 2 hours 2 hours Standard Price or Rate $11.00 per pound $17.00 per hour $ 3.00 per hour Standard Cost Direct materials Direct labor Variable manufacturing overhead $55.00 $34.00 $6.00 During the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. • All of the material that was purchased was used to produce 3,900 units. • 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct labor spending variance? Multiple Choice $600 F $600 U $3,300 F $3,300 U
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