Reichs Company the Following Information Is for Reichs Company's September

question 117

Multiple Choice

Reichs Company The following information is for Reichs Company's September production:
$\begin{array}{ll}\textbf { Standard: }\\\text { Material } & 4.0 \text { feet per unit } @ \$ 3.75 \text { per foot } \\\text { Labor } & 3.0 \text { hours per unit } @ \$ 8.25 \text { per hour }\end{array}$

$\begin{array}{ll}\textbf { Actual: }\\\text { Production } & 3,500 \text { units produced during the month } \\\text { Material } & 14,200 \text { feet used; } 14,700 \text { feet purchased @ } \$ 3.70\text { per foot } \\\text { Labor } & 10,400 \text { direct labor hours } \$ 8.35\text { per hour }\end{array}$ (Round all answers to the nearest dollar.)
Refer to Reichs Company.What is the labor efficiency variance?

• A)$825 F
• B)$825 U
• C)$835 F
• D)$835 U

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Definitions:

Sole Proprietorship

A type of business enterprise owned and managed by one person, where there is no legal distinction between the owner and the business.

Advantages

Benefits or positive aspects of a particular situation, strategy, or choice.

Disadvantages

The unfavorable or negative aspects of a particular situation or choice.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project, often sharing revenues, expenses, and control.