(Solved) Horizon Marine Stores Company manufactures special metallic materials and decorative fittings for ...

Horizon Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Horizon 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: 4 pounds per unit; $4 per pound
Direct labor: 4 hours per unit; $15 per hour

Horizon produced 5,000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the direct labor cost variance was $6,000 F. Which of the following is a logical explanation for this variance?
A) The company paid a lower cost for the direct materials than allowed by the standards.
B) The company used a lower quantity of direct materials than allowed by the standards.
C) The company used fewer labor hours than allowed by the standards.
D) The company paid a lower cost per hour for labor than allowed by the standards.

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.

Horizon Marine Stores Company manufactures special metallic materials and decorative fittings for ...

Horngren's Financial & Managerial Accounting, The Financial Chapters

Related Topics