Question

Cohort Enterprises sells plastic containers. It recently lost some accounting data because one of its employees accidentally deleted a data file. This forced the company to use incomplete information to analyze operations. Consider the following data for the most recent month of operations during which 10,000 containers were produced and sold. The following is the incomplete data available for direct labor used in production during the month:

Direct labor:

      Actual hours worked: 2,500

      Actual rate per hour: $16

      Efficiency variance: $7,000 F

      Rate variance: $5,000U

The budgeted direct labor time allowed per plastic container:

		0.40 hours
		0.32 hours
		0.18 hours
		0.10 hours
		0.30 hours
		0.25 hours

Answer 1

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