Assume now that the insurance company is a monopolist that wants to maximize expected profits. What price would the monopolist c
1 answer:
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Answer:
$429.60 Favorable
Explanation:
Provided information,
Standard Hours for each product = 3 hours
Standard Cost per hour = $14.00
Actual hours used = 198
Actual output = 80 connectors
Standard hours for actual output = 80 3 = 240 hours
Actual Rate = $14.80 per hour
Direct labor cost variance = Standard Cost - Actual Cost
Standard Cost = Standard hours Standard Rae
= 240 $14 = $3,360
Actual Cost = 198 $14.80 = $2,930.40
Variance = $3,360 - $2,930.40 = $429.60
Since actual cost is less than standard variance is favorable.
$429.60 Favorable