Machine Builders Inc

question 40

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 flexible-budget variance for July, to the nearest dollar, was:

• A) $6,600 unfavorable.
• B) $7,200 unfavorable.
• C) $51,000 favorable.
• D) $58,200 favorable.
• E) $65,400 favorable.

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Definitions:

Increase Wages

The process of raising the amount of money paid to workers for their labor, often in response to inflation, increased living costs, or improved worker productivity.

Bilateral Monopoly

A market structure consisting of a single supplier and a single buyer.

Economic Outcome

The result or consequence of economic policies and actions, measured in terms of growth, employment, inflation, and other macroeconomic variables.

Society

A group of individuals who live together in an organized community with shared laws, traditions, and values.