Sheldon Company Manufactures Only One Product and Uses a Standard

question 116

Multiple Choice

Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances: direct labor rate variance = $30,000 favorable; direct labor efficiency variance = $50,000 unfavorable. Sheldon allows 5 standard direct labor hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 25% more direct labor hours than the standard allowed.

What were the total standard hours allowed (SQ) for the units manufactured during the month, rounded to the nearest whole number?

• A) 1,000.
• B) 2,500.
• C) 4,000.
• D) 5,000.
• E) 6,000.

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Definitions:

Cultural Context

The environmental and social factors that influence the values, beliefs, and practices of a culture or a community.

Abnormal Behavior

Actions, thoughts, or feelings that are considered to deviate significantly from societal norms or expectations, which may or may not be symptomatic of a mental health disorder.

Sociological

Relating to the study of society and social interactions among individuals.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states or identities within a single individual.