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preciousharrington13
16.03.2020 •
Business
Benson Company manufactures special metallic materials for luxury homes that require highly skilled labor. Benson uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 2 pounds per unit; $ 4 per pound Direct labor: 4 hours per unit; $ 14 per hour Benson produced 5 comma 000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 30 comma 000 direct labor hours and actual total direct labor costs were $ 240 comma 000. What is the direct labor efficiency variance?
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Ответ:
Direct labor efficiency variance= $140,000 unfavorable
Explanation:
Giving the following information:
Standard requirements:
Direct labor:
4 hours per unit
$ 14 per hour
Benson produced 5,000 units during the quarter.
Actual cost:
Actual direct labor hours= 30,000
direct labor costs= $240,000
First, we need to calculate the standard total direct labor hours required to produce 5,000 units.
Total direct labor hours= 5,000*4= 20,000 hours
Now, we can calculate the direct labor efficiency variance:
Direct labor efficiency variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor efficiency variance= (20,000 - 30,000)*14= $140,000 unfavorable
It is unfavorable because the company used more direct labor hours than estimated.
Ответ:
The answer is number 3. a wraparound loan
Explanation:
A wrap-around loan is a type of mortgage loan that can be used in owner-financing deals. This type of loan involves the seller's mortgage on the home and adds an additional incremental value to arrive at the total purchase price that must be paid to the seller over time.