Dillon has a standard of 2 hours of labor per unit, at $12 per hour. In producing 2,000 units, Dillon used 3,850 hours of labor at a total cost of $46,970. Dillon's total labor variance is

1,030 favorable

Explanation:

Data given

Total cost = $46,970

Labor hours = 3,850

Standard hours = 2 hours per unit at $12 per hour

The computation of total variance is shown below:-

For computing the total variance first we need to find out the labor rate variance and labor efficiency variance

Labor rate variance = (Actual rate - Standard rate) × Actual hours

= ($46,970 ÷ 3,850 - 12) × 3,850

= ( 12.20 - $12) × 3850  

= $770 unfavorable

Labor efficiency variance = (Standard hours - Actual hours) × standard rate

= (2 × 2,000 - 3,850) × $12  

= (4,000 - 3,850) × $12    

= 150 × 12    

= $1,800 favorable

Total labor variance = Labor price variance + labor quantity variance  

= 770 unfavorable + 1800 favorable

= 1,030 favorable

So, for computing the total variance we simply applied the above formula.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.