Whitman Has a Direct Labor Standard of 2 Hours Per

question 38

Multiple Choice

Whitman has a direct labor standard of 2 hours per unit of output.Each employee has a standard wage rate of $22.50 per hour.During July,Whitman paid $94,750 to employees for 4,445 hours worked.2,350 units were produced during July.What is the direct labor efficiency variance?

• A)$11,000.00 favorable
• B)$5,737.50 favorable
• C)$5,262.50 favorable
• D)$5,262.50 unfavorable

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Definitions:

Gain

An increase in wealth, resources, or advantage, often resulting from investment or competitive activities.

Lose

To be deprived of or cease to have or retain something, often used in contexts of competition or misplacement.

Breakeven

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

High Value

Referring to items or services deemed of significant worth, usually due to their quality, utility, scarcity, or demand.