Answer:
$2,925 Unfavorable
Explanation:
The computation of direct labor rate variance is shown below:-
Actual rate = Direct labor cost ÷ Actual direct labor hours
= $5,250 ÷ 150
= 35
Direct labor rate variance = (Selling rate - Actual rate) × Actual hours rate
= ($15.50 - 35) × 150
= -$19.5 × 150
= $2,925 Unfavorable
Therefore for computing the direct labor rate variance we simply applied the above formula.
Some benefits citizens of a centrally planned economy derive from a move toward market based system are: Greater efficiency of resource use. Determines the types of goods and services to be produced the method in which they will be produced and the allocation of finished products.
Available options are:
A. The sale would be proper only upon requisite approval by the appropriate number of directors and at no more than Shephard's cost, thus precluding his profiting from the sale to the corporation.
B. The sale would be void under the self-dealing rule.
C. The sale would be proper and Shephard would not have to account to the corporation for his profit if the sale was approved by a disinterested majority of the directors.
D. The sale would not be proper, if sold for the present fair value of the property, without the approval of all of the directors in these circumstances.
Answer:
C. The sale would be proper and Shephard would not have to account to the corporation for his profit if the sale was approved by a disinterested majority of the directors.
Explanation:
The reason is that the transaction is arms length transaction and in this transaction the payer pays the amount that he must pay for an equivalent item which we call an fair value payment. The receiver here is a director though but he is receiving an legitimate price and this price is fair value of the property so he is not required to mention his profit share because the company is paying him fair value of the property.
