Oslund Company Manufactures Only One Product and Uses a Standard

question 30

Multiple Choice

Oslund Company manufactures only one product and uses a standard cost system. During the past month, the following variances were observed: $\begin{array}{lc}\text { Direct labor rate variance } & \$ 30,000 \text { favorable } \\\text { Direct labor efficiency variance } & 50,000 \text { unfavorable } \\\text { Variable overhead efficiency variance } & 20,000 \text { unfavorable } \\\text { Standard direct labor hours (DLH) per unit of output } & 5.00\end{array}$ Oslund applies variable overhead using a standard rate of $20.00 per standard DLH allowed. During the month, Oslund used 20% more DLHs than the total standard hours allowed for the units manufactured.

What were the total standard DLHs (to the nearest whole number) for the units manufactured by Oslund Company during the past month?

• A) 1,000.
• B) 2,500.
• C) 4,000.
• D) 5,000.
• E) 6,000.

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Definitions:

Thalamus

A crucial part of the brain responsible for processing sensory information and relaying it to the appropriate parts of the cortex.

Amygdala

A part of the brain involved in emotion regulation, and the processing of fear and pleasure responses.

Autonomic Arousal

This involves the automatic activation of physiological responses in the body, such as heart rate and sweating, typically in reaction to stress or perceived threats.

Physiological Arousal

The condition of having one's body in a heightened state of alertness and physical readiness, often as a response to stimuli.