The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is: Actual hours used Actual rate per hour Standard rate per hour Standard hours for units produced Multiple Choice $29,000 favorable. O $29,000 unfavorable. $22.500 unfavorable. 45,000 $15.00 $14.50 47,000
The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is: Actual hours used Actual rate per hour Standard rate per hour Standard hours for units produced Multiple Choice $29,000 favorable. O $29,000 unfavorable. $22.500 unfavorable. 45,000 $15.00 $14.50 47,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:O
O
O
O
$29,000 favorable.
$29,000 unfavorable.
$22,500 unfavorable.
$52,500 favorable.
$52,500 unfavorable.
Transcribed Image Text:The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is:
Actual hours used
Actual rate per hour
45,000
$15.00
$ 14.50
Standard rate per hour
Standard hours for units produced
47,000
Multiple Choice
$29,000 favorable.
$29,000 unfavorable.
$22,500 unfavorable.
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