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Question 1: A job was budgeted to require 4 hours of labor per unit at $11.00 per hour. The job consisted of 7,000 units and was completed in 24,000 hours at a total labor cost of $312,900. What is the direct labor rate variance?
Option 1: $44,000 unfavorable.
Option 2: $48,900 unfavorable.
Option 3: $4,900 unfavorable.
Option 4: $48,900 favorable.
Option 5: $44,000 favorable.
The truck will have no effect on revenues, but it is expected to save the firm $20,300 per year in before-tax operating costs, mainly labor - The firm's marginal tax rate is 35 percent. What will the cash flows for this project be?"
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Calculate the Manufacturing Overhead balance at the end of the year and the journal entry to clear this amount if necessary.
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