1. Aaron Corporation expected to use 1.1 direct labor hours to produce one unit of...

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Accounting

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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