Minmax Co.'s direct labor information for February is as follows:$\begin{array}{lr}
\text { Direct labor hours worked (AQ) } & 33,600 \
\text { Standard direct labor hours for units manufactured (SQ) } & 35,000 \
\text { Unfavorable direct labor rate variance } & \$ 11,760 \
\text { Total payroll for direct labor } & \$ 470,400
\end{array}$The total standard direct labor cost for the units manufactured in February, rounded to the nearest dollar, was:
A) $458,640.
B) $470,400.
C) $477,750.
D) $478,240.
E) $490,000.

Question

Quizplus · Accepted Answer

The total standard direct labor cost can be calculated by adding the unfavorable direct labor rate variance to the total payroll for direct labor. Thus, $470,400 + $11,760 = $482,160. However, none of the options exactly match this calculation, suggesting a mistake in my initial explanation. Correctly, to find the total standard direct labor cost, we should consider the standard cost as the basis. Given the total payroll and the unfavorable variance, we can infer the standard cost indirectly. The correct approach involves understanding the relationship between actual costs, standard costs, and variances. The actual payroll cost given is for the actual hours worked, and the variance indicates how much more was paid than the standard rate. However, without the standard rate per hour, direct calculation seems challenging. The correct answer, based on the information provided and typical calculation methods for standard cost accounting, would involve understanding these relationships and possibly recalculating based on the correct interpretation of standard costing principles. My initial explanation mistakenly added the variance to the total payroll, which does not directly lead to the standard cost calculation without considering the standard rate and hours.

Minmax Co'S Direct Labor Information for February Is as Follows