Suppose that you buy a new car, and you purchase it with a bag of gold coins minted in a foreign country. Which of the following

Answer:

24L^- 1/2

Explanation:

We have the information that

The marginal labor product is expressed as:

MPL = 24L^- 1/2

As the question does not specify the power sign, we assumed it

The unit price for green chalk is $1

The hourly wage is $12

Considering all of the above data, the labor's revenue product would be

= 24L^- 1/2

= Price of green chalk × 24L^- 1/2

= $1 × 24L^- 1/2

= 24L^- 1/2

Answer:

a. Overall labor variance $4,000 Unfavorable

Labor rate variance $1,200 Unfavorable

Labor efficiency variance $2,860 Unfavorable

b. $2,300 Favorable

Explanation:

a. The calculation of total, price, and quantity variances for labor is detailed below:

1. Total labor variance = (Produced units × Direct labor hours × Rate per hour) - (Actual direct labor hours × Average wage rate)

= (2,000 × 1.90 × $14.00) - (4,000 × $14.30)

= $53,200 - $57,200

= $4,000 Unfavorable

Labor price variance = (Hourly rate - Average rate) × Actual direct labor hours

= ($14.00 - $14.30) × 4,000

= -$0.3 × 4,000

= $1,200 Unfavorable

Labor quantity variance = (Produced units × Direct labor hours - Actual direct labor hours) × Hourly rate

= (2,000 × 1.90 - 4,000) × $14.30

= (3,800 - 4,000)  × $14.30

= -200 × $14.30

= $2,860 Unfavorable

b) Total overhead variance = Manufacturing overhead incurred - (Produced units × Direct labor hours × Predetermined overhead rate)

= $81,300 - (2,000 × 1.90 × $22.00)

= $81,300 - $83,600

= $2,300 Favorable