Oslund Company Manufactures Only One Product and Uses a Standard

question 70

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 for the units manufactured.

What were the total actual DLHs worked by Oslund Company during the past month, to the nearest whole number?

• A) 1,200.
• B) 3,000.
• C) 4,800.
• D) 6,000.
• E) 7,200.

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