Use the Following Information to Answer the Following Questions

question 8

Multiple Choice

Use the following information to answer the following Questions
Thomas Enterprises purchased 56,000 pounds (cost = $420,000) of direct material to be used in the manufacture of the company's sole product. According the production specifications, each completed unit requires five pounds of direct material at a standard cost of $7.80 per pound. Direct materials consumed by the end of the period totaled 53,500 pounds in the manufacture of 10,900 finished units.
An examination of Thomas’ payroll records revealed that the company worked 22,000 labor hours (cost = $319,000) during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of $14.80 per hour. Assume that the company computes variances at the earliest point in time.

-Thomas' direct-labor efficiency variance was

• A) $2,900F.
• B) $2,900U.
• C) $2,960F.
• D) $2,960U.
• E) None of the answers is correct.

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Definitions:

Internal Auditors

Professionals employed by an organization to perform audits on its operations, systems, and processes to ensure accuracy, compliance, and efficiency.

Shift Supervisors

Individuals responsible for overseeing operations and workers during a specific period or shift within a workplace.

Segregation Of Duties

An internal control measure that divides responsibilities among different people to reduce risk of error or fraud.

Authorize

To give official permission for or approval to an action or plan.