Mandy Company Has the Following Information from Last Month What Was Mandy's Direct Labor Flexible-Budget Variance for the Month

question 103

Multiple Choice

Mandy Company has the following information from last month: $\begin{array}{lr}\text { Standard direct labor hours allowed for units produced (SQ) } & 3,600 \\\text { Actual direct labor hours worked (AQ) } & 3,480 \\\text { Direct labor efficiency variance, favorable (F) } & \$ 5,760 \\\text { Total payroll } & \$ 187,920\end{array}$ What was Mandy's direct labor flexible-budget variance for the month, rounded to the nearest dollar?

• A) $15,120 unfavorable.
• B) $20,800 unfavorable.
• C) $36,720 favorable.
• D) $42,480 favorable.
• E) $79,920 favorable.

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Definitions:

Return on Equity

A metric indicating financial success determined by dividing a company's net income by its shareholders' equity, demonstrating the efficacy of using investments to create increased profits.

Net Profit Margin

A financial metric that shows the percentage of revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends are deducted.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Debt-to-equity Ratio

A financial ratio highlighting the use of debt versus equity in the capital structure supporting a company's assets.