LVN Corporation's Direct Labor Costs and Related Information for the Month

question 3

Multiple Choice

LVN Corporation's direct labor costs and related information for the month of June were as follows: What is LVN Corporation's direct labor efficiency variance?

• A)$1,978 favorable
• B)$1,978 unfavorable
• C)$1,750 unfavorable
• D)$1,750 favorable

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Definitions:

Manufacturing Overhead Costs

The indirect costs associated with manufacturing, including costs related to running the factory floor that are not directly traceable to specific units of products.

March

The third month of the year in the Gregorian calendar, known for marking the transition from winter to spring in the Northern Hemisphere.

Fixed Manufacturing Cost

Expenses that do not vary with the level of production output, including salaries of managers, lease payments, and maintenance.

Units Produced

The total number of units of product manufactured during a specific time frame.