Question 4

Europa Company manufactures only one product. Presented below is direct labor information for November.

Standard direct labor hours per unit of product		3.80
Number of finished units produced		5,700
Standard wage rate per direct labor hour (SP)	$	19.80
Total direct labor payroll for the period	$	381,800
Actual wage rate per direct labor hour worked (AP)	$	16.60

The direct labor rate variance for November (to the nearest dollar) was:

Multiple Choice

• $23,000 unfavorable.

• $26,532 unfavorable.

• $47,068 favorable.

• $73,600 favorable.

• $100,132 favorable.

Europa Company manufactures only one product. Presented below is direct labor information for November.

Standard direct labor hours per unit of product		5.20
Number of finished units produced		4,300
Standard wage rate per direct labor hour (SP)	$	21.20
Total direct labor payroll for the period	$	439,200
Actual wage rate per direct labor hour worked (AP)	$	18.00

The direct labor flexible-budget variance for November, to the nearest dollar, was:

Multiple Choice

• $24,400 unfavorable.

• $43,248 unfavorable.

• $34,832 favorable.

• $78,080 favorable.

• $121,328 favorable.