Oslund Company Manufactures Only One Product and Uses a Standard

question 70

Multiple Choice

Oslund Company manufactures only one product and uses a standard cost system. During the past month, the following variances were observed: $\begin{array}{lc}\text { Direct labor rate variance } & \$ 30,000 \text { favorable } \\\text { Direct labor efficiency variance } & 50,000 \text { unfavorable } \\\text { Variable overhead efficiency variance } & 20,000 \text { unfavorable } \\\text { Standard direct labor hours (DLH) per unit of output } & 5.00\end{array}$ Oslund applies variable overhead using a standard rate of $20.00 per standard DLH allowed. During the month, Oslund used 20% more DLHs than the total standard hours for the units manufactured.

What were the total actual DLHs worked by Oslund Company during the past month, to the nearest whole number?

• A) 1,200.
• B) 3,000.
• C) 4,800.
• D) 6,000.
• E) 7,200.

---

Definitions:

Customer List

A collection or database of customers who have previously purchased from or interacted with a business.

Fair Labor Standards Act

A United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full- and part-time workers.

Minimum Wage

The lowest wage permitted by law or by a special agreement (such as one with a labor union).

Overtime Pay

Additional compensation paid to employees who work beyond the standard hours designated in their employment contract.