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Problem 1: Dreidell Corporation expected to use 4.5 direct labor hours to produce one unit of their product, at a rate of $14.5/DLH. Actual results for last year indicate that they sold 5,000 units, where their direct labor workforce actually worked 6,000 hours at a rate of $14.25/DLH. What is the Direct Labor Rate Variance?
Option 1: $1,500 favorableOption 2: $1,250 unfavorableOption 3: $1,250 favorableOption 4: $1,500 unfavorable
Compute the C.M. per unit (compute selling price per unit and V.C. per unit first)
Calculate the present value of each option. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.)
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