Joe Malay Received the Following Report on the Division's Operation

question 119

Multiple Choice

Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable; Direct labor efficiency variance = $70,000 (?) . The standard calls for 3.0 direct labor hours per unit of output at $28.00 per labor hour (SP) . The standard direct labor hours allowed for the units manufactured (SQ) is 20 percent more than the total direct labor hours worked (AQ) in August.

What were the total standard hours allowed (SQ) for the units manufactured in August (to the nearest whole number) ?

• A) 10,000.
• B) 12,000.
• C) 12,500.
• D) 15,000.
• E) 15,625.

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Definitions:

Index

A statistical measure or indicator often used in finance to represent the performance of a group of assets or a sector of the market.

Interpret

To explain or provide the meaning of something, often requiring analysis or understanding of context.

Quality

pertains to the degree of excellence or superiority that a product, service, or process possesses.

Manufacturing Design

The process of developing the design of a product to be manufactured, focusing on the technical specifications and requirements.