Machine Builders Inc

question 98

Multiple Choice

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct labor efficiency variance for July, to the nearest dollar, was:

• A) $6,600 favorable.
• B) $7,200 unfavorable.
• C) $8,000 unfavorable.
• D) $14,400 favorable.
• E) $79,200 favorable.

---

Definitions:

Hanger Bearing

The center support bearing used to suspend the first section of the drive shaft in a double drive shaft assembly; used on truck drivelines when the distance between the transmission and drive carrier exceeds 70 inches (178 mm) or so. Consists of a sealed rolling element bearing that is supported by a rubber insulator and mounted in a bracket assembly. Also known as center support bearing.

Factory Lubricated

Refers to components that are pre-lubricated during manufacturing, reducing the need for initial maintenance.

U-joints

Universal joints, flexible pivot points that allow the transmission of power at varied angles between shafts in a drivetrain.

NLGI Grade

A classification given by the National Lubricating Grease Institute indicating the consistency of lubricating grease.