Marv Company's Direct Labor Costs for Manufacturing Its Only Product

question 99

Multiple Choice

Marv Company's direct labor costs for manufacturing its only product were as follows for October: $\begin{array}{lrr}\text { Standard direct labor hours (DLHs) per unit of product } & 2 \\\text { Budgeted finished units for the period } & 6,000 \\\text { Actual number of finished units produced } & 5,000 \\\text { Standard wage rate per direct labor hour (SP) } & \$ 20.00 \\\text { Direct labor costs incurred } & \$ 207,000 \\\text { Actual wage rate per direct labor hour (AP) } & \$ 18.00\end{array}$ The direct labor efficiency variance for October, rounded to the nearest dollar, was:

• A) $3,000 unfavorable.
• B) $20,000 favorable.
• C) $23,000 favorable.
• D) $30,000 unfavorable.
• E) $50,000 unfavorable.

---

Definitions:

Long-Term State

A sustained condition or situation over an extended period, often used in the context of planning, investment, or health and wellbeing.

Organizational Culture

The shared values, beliefs, traditions, and behaviors that shape the social and psychological environment of an organization.

Core Values

Fundamental beliefs and guiding principles that dictate behavior and action within an organization.

Shared Understandings

A common grasp or agreement of knowledge, assumptions, or values among a group of people.