MajorNet Systems is a start-up company that makes connectors for high-speed Inte

Question

MajorNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $145 for each connector and fwed costs of $7,500 per month MajorNiet's static budget predicted production and sales of 100 connectors in August, but the company actualy produced and sold only 84 connectors at a total cost of 21.000. MajorNet Systemss managers could set direct labor standards based on O A. hmand-motion studes. OB. benchmarking O D. All of the above

Explanation / Answer

MajorNet's Systems' managers could set direct labor standards based on:

time and motion studies, continuous improvemet, benchmarking. S the correct answer to this question is

D. All of the above.

Setting direct labor rate standard means calculating an expected hourly rate for labor costs. And this can be achived by all the above techniques mentioned above.

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