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:

Credit Terms

Credit terms are the conditions under which a seller will extend credit to a buyer, including the repayment period, discount for early payment, and the late fee.

Payments

Transactions involving the transfer of money or equivalent to another party in exchange for goods, services, or to fulfill a legal obligation.

Merchandise Inventory

Goods that a retailer or wholesaler purchases for resale to customers.

Ending Merchandise Inventory

The final stock value of goods being sold by a retail or wholesale company at the close of an accounting period.