Marv Company's Direct Labor Costs for Manufacturing Its Only Product

question 99

Multiple Choice

Marv Company's direct labor costs for manufacturing its only product were as follows for October: $\begin{array}{lrr}\text { Standard direct labor hours (DLHs) per unit of product } & 2 \\\text { Budgeted finished units for the period } & 6,000 \\\text { Actual number of finished units produced } & 5,000 \\\text { Standard wage rate per direct labor hour (SP) } & \$ 20.00 \\\text { Direct labor costs incurred } & \$ 207,000 \\\text { Actual wage rate per direct labor hour (AP) } & \$ 18.00\end{array}$ The direct labor efficiency variance for October, rounded to the nearest dollar, was:

• A) $3,000 unfavorable.
• B) $20,000 favorable.
• C) $23,000 favorable.
• D) $30,000 unfavorable.
• E) $50,000 unfavorable.

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Definitions:

Labor Force

The aggregate sum of individuals working or in pursuit of work within a nation or area.

Discouraged Workers

Individuals not actively seeking employment because they believe no jobs are available for them.

Frictional Unemployment

A type of unemployment that occurs when individuals are temporarily unemployed while moving between jobs, entering the workforce for the first time, or re-entering the workforce.

Discouraged Workers

Individuals not actively seeking employment due to believing no jobs are available for them or they would not qualify for the jobs that are available.