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Question
Assume Martin Guitar Company has a standard of 3 hours of direct labor per unit produced and $20 per hour for the labor rate. During last period, the company used 24,000 hours of direct labor at a $456,000 total cost to produce 6,000 units. Compute the direct labor rate and efficiency variances.
A. Rate variance: $24,000 unfavorable; Efficiency variance: $120,000 favorable.
B. Rate variance: $24,000 favorable; Efficiency variance: $120,000 unfavorable.
C. Rate variance: $96,000 favorable; Efficiency variance: $96,000 unfavorable.
D. Rate variance: $120,000 favorable; Efficiency variance: $24,000 unfavorable.
E. Rate variance: $120,000 unfavorable; Efficiency variance: $24,000 unfavorable.
Answer
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Related questions
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C. It does not matter because both alternatives have the same result.
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Q:
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Periods
12 Percent 1
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1.6901 3
2.4018 4
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B. $(251.52) and Scott would be willing to pay $29,748.48 for the machine.
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Q:
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B. It includes the time value of money.
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Q:
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Q:
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B. $500 decrease
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Q:
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42
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B. Neither product A nor product B should be processed further.
C. Only product B should be processed further.
D. Only product A should be processed further.
E. A processing further decision cannot be made from the available data.
Q:
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B. Income will increase by $7 per unit.
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Q:
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D. $50
E. $5
Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.