Shade Company Adopted a Standard Cost System Several Years Ago

question 61

Multiple Choice

Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms × $12.00/kilogram) = $60.00/unit; direct labor (3.5 hours/unit × $20.00/hour) = $70.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:The direct labor efficiency variance for December, to the nearest dollar, was:

• A) $1,590 favorable.
• B) $5,650 favorable.
• C) $7,240 unfavorable.
• D) $59,410 unfavorable.

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Definitions:

National Labor Relations Act

A foundational statute of United States labor law that protects the rights of employees to organize, bargain collectively, and engage in concerted activities for mutual aid or protection.

Business Environment

The combination of external and internal factors that influence a company's operating situation, including competitors, customers, suppliers, and regulatory settings.

Managerial Labor

Work or tasks performed by managers in organizing, leading, and making decisions for a company or organization.

Flash Mob Protest

A type of demonstration where a large group of people quickly assembles to perform an act of protest before dispersing just as quickly.