Sheldon Company Manufactures Only One Product and Uses a Standard

question 31

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 for the output achieved.

What were the total actual direct hours worked (AQ) , rounded to the nearest whole number?

• A) 1,000.
• B) 3,000.
• C) 4,000.
• D) 5,000.
• E) 6,000.

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