Use the Following Data That Relate to Product No

question 71

Multiple Choice

Use the following data that relate to product no. 33 of Volusia Corporation to answer the following Questions
Direct labor standard: 5 hours at $14 per hour
Direct labor used in production: 45,000 hours at a cost of $639,000
Manufacturing activity: 8,900 units completed


-The direct-labor efficiency variance is:

• A) $7,000F.
• B) $7,000U.
• C) $7,100F.
• D) $7,100U.
• E) None of the answers is correct.

---

Definitions:

Production Function

A mathematical model that describes the relationship between inputs used in production and the resultant output of goods or services.

Labor

Workforce or employment involved in the creation of goods and services within an economy.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at different prices.

Labor Supply Curve

Represents the relationship between the quantity of labor supplied and the wage rate in a given period.