Question
James Company manufactures t-shirts. During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour. The
James Company manufactures t-shirts. During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour. The materials and labor standards for manufacturing the t-shirts are:
| Direct materials (6 yards of fabric @ $3 per yard) | $18 |
| Direct labor (2.4 hours @ $8.00 per hour) | 17 |
It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
What is James labor rate variance?
| a. | $190,625 F | |
| b. | $193,750 U | |
| c. | $250,000 U | |
| d. | $250,000 F |
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No Nonsense Employee Retention Audit
Authors: Jeff Kortes
1st Edition
0988307014, 978-0988307018
