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FromTheMoon [43]
3 years ago
7

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1800 units, the actual direct

labor cost was $48000 for 3000 direct labor hours worked, the total direct labor variance is: a. $6000 unfavorable. b. $1800 unfavorable. c. $3750 unfavorable. d. $6000 favorable.
Business
1 answer:
Marat540 [252]3 years ago
6 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1800 units, the actual direct labor cost was $48000 for 3000 direct labor hours worked.

We need to calculate the total direct labor variance, using two formulas:

Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (1,800*2 - 3,000)*15= $9,000 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (15 - 48,000/3,000)*3,000= $3,000 unfavorable

Total direct labor variance= 9,000 - 3,000= $6,000 favorable

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First let us identify if the asset is a gain or loss. An asset is a gain if it contributes to the banks overall finance while it is a loss if it is a cost directly or indirectly.

Deposits of $300 million = Gain (+)

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Lera25 [3.4K]

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