Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Keep it Minimal, Inc. is a manufacturer of furniture. At the beginning of February, it was estimated that each unit of Let the Light In

image text in transcribed
Keep it Minimal, Inc. is a manufacturer of furniture. At the beginning of February, it was estimated that each unit of Let the Light In would require 4 hours of direct labor, and the related direct labor cost was expected to equal $36 per unit of product. During February, the company logged 3,750 hours of direct labor hours to produce 1,000 units of Let the Light In. Direct laborers were paid at a rate of $9.15 per hour. Which of the following statements is correct with regard to Let the Light In's February production? A.The direct labor standard rate was greater than the direct labor actual rate during the month. B.The direct labor hours expected for the actual output during the month were less than the actual direct labor hours logged during the month. C.It is likely that the direct labor variances are not related since both the rate variance and the efficiency variance are unfavorable. D.If the company used higher paid and more efficient workers than expected for production during the period, it was not worth it." E.The total actual direct labor cost was lower than the total expected direct labor cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Current Issues In Auditing

Authors: Michael J Sherer, W Stuart Turley

3rd Edition

1853963658, 978-1853963650

More Books

Students also viewed these Accounting questions