1. Aaron Corporation expected to use 1.1 direct labor hours to produce one unit of...
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1. Aaron Corporation expected to use 1.1 direct labor hours to produce one unit of their product, at a rate of $12/DLH. Actual results for last year indicate that they sold 420,000 units, where their direct labor workforce actually worked 500,000 hours at a rate of $13.25/DLH. What is the Direct Labor Rate Variance?
A. $625,000 unfavorable
B. $ 503,500 favorable
C. $577,500 favorable
D. $503,500 unfavorable
2. San Tone, Inc. installs pre-built decks on mobile homes. The expect to make 300 decks next year, where each deck requires 500 ft of lumber, at $1.75 per foot.
Calculate the standard cost of direct materials (per deck).
A. $875
B. $525
C.$1,400
D. $262,500
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