1. Relevant information for direct labor is as follows: Actual hours worked840 Actual wage.$15.25 Standard hours allowed820...
Question:
1. Relevant information for direct labor is as follows:
Actual hours worked…………840
Actual wage………………….$15.25
Standard hours allowed……820
Standard wage…………….$15.50
What was the direct labor efficiency variance?
a. $305 favorable
b. $305 unfavorable
c. $310 favorable
d. $310 unfavorable
2. Which of the following is the most likely explanation for an unfavorable materials usage variance and a favorable labor wage variance?
a. The new labor contract increased wages.
b. Higher quality materials were purchased, resulting in less waste.
c. The company experience labor turnover and newer, less experienced workers were hired.
d. A new supplier offered a lower price for materials.
Step by Step Answer:
Cornerstones of Cost Management
ISBN: 978-1305970663
4th edition
Authors: Don R. Hansen, Maryanne M. Mowen