Keep it Minimal, Inc. is a manufacturer of furniture. At the beginning of February, it...
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Keep it Minimal, Inc. is a manufacturer of furniture. At the beginning of February, it was estimated that each unit of Let the Light In would require 4 hours of direct labor, and the related direct labor cost was expected to equal $36 per unit of product. During February, the company logged 3,750 hours of direct labor hours to produce 1,000 units of Let the Light In. Direct laborers were paid at a rate of $9.15 per hour. Which of the following statements is correct with regard to Let the Light In's February production? A.The direct labor standard rate was greater than the direct labor actual rate during the month. B.The direct labor hours expected for the actual output during the month were less than the actual direct labor hours logged during the month. C.It is likely that the direct labor variances are not related since both the rate variance and the efficiency variance are unfavorable. D.If the company used higher paid and more efficient workers than expected for production during the period, it was not worth it." E.The total actual direct labor cost was lower than the total expected direct labor cost
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