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:

Left Hemisphere

The left hemisphere of the brain is responsible for controlling the right side of the body and is typically associated with logical reasoning, analytical thinking, and language processing.

Corpus Callosum

A large band of neural fibers connecting the two hemispheres of the brain, facilitating interhemispheric communication.

Cerebral Hemispheres

The cerebral hemispheres are the two halves of the brain that are divided by the longitudinal fissure, responsible for controlling different functions, with the left hemisphere typically managing speech and comprehension, and the right hemisphere focusing on creativity and spatial ability.

Split-Brain

A condition resulting from the severing of the corpus callosum, leading to a situation where the two hemispheres of the brain cannot communicate directly with each other.