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Question - The following information describes a company's usage of direct labor in a recent period:
Actual direct labor hours use 40,000
Actual rate per hour 23.00
Standard rate per hour 11.25
Standard hours for units produced 32,000
How much is the direct labor rate variance?
A. $376,000 favorable
B. $470,000 favorable
C. $376,000 unfavorable
D. $470,000 unfavorable
Discounted cash flow techniques are capital budgeting techniques that take into account both the time value of money and the estimated net cash flow from an investment.
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