Strong Manufacturing the Following Information Is Available for Strong Manufacturing

question 116

Multiple Choice

Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units:
$\begin{array}{ll}\text { Standard: }\\\text { Material } & 2 \text { pounds per urit } @ \$ 5.80 \text { per pound } \\\text { Labor } & 3 \text { direct labor hours per urit @ } \$ 10.00 \text { per hour }\\\\\text { Actual: }\\\text { Material } & 4,250 \text { pounds purchased and used @ } \$ 5.65 \text { per pound } \\\text { Labor } & 6,300 \text { directlabor hours at } \$ 9.75 \text { per hour }\end{array}$ Refer to Strong Manufacturing Company.What is the labor efficiency variance?

• A)$731.25 F
• B)$731.25 U
• C)$750.00 F
• D)none of the answers are correct

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Definitions:

After-Tax Discount Rate

The discount rate used in investment appraisal and financial analysis that takes into account the effect of taxes on the rate of return.

Income Tax Rate

The percentage at which income is taxed by the government, varying across income levels and jurisdictions.

Straight-Line Depreciation

A technique for distributing the expense of an asset uniformly over its lifetime.

Renovation Cost

The financial outlay involved in restoring, updating, or modifying an asset, often a building, to either improve its value or extend its life.