Question
A Company makes pots. The company's direct labor Spending Variance = ($24,600) (Bad thing/Unfavorable). Consider the following information: Sales volume: Original plan = 56,000 finished
A Company makes pots. The company's direct labor Spending Variance = ($24,600) (Bad thing/Unfavorable). Consider the following information:
Sales volume: Original plan = 56,000 finished units; Actual 60,000 finished units
Original planning assumptions (Standard): Labor hours required to make one Bee = 5.0; Hourly pay rate = $8.75
Compute the Company's Direct Labor Quantity Variance.
Group of answer choices
$120,960 (Bad Thing/Unfavorable)
$105,000 (Good Thing/Favorable)
$129,600 (Bad Thing/Unfavorable)
$96,360 (Good Thing/Favorable)
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Auditing & Assurance Services A Systematic Approach
Authors: William F Messier Jr, Steven M Glover, Douglas F Prawitt
11th Edition
1260687635, 1259969444, 9781259969447, 978-1260687637
