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Ally Mfg Uses a Standard Cost System and Its July Production

question 11

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Ally Mfg. uses a standard cost system and its July production of 1,800 units involved actual direct labor costs of $242,000 for 5,500 hours worked (AQ) . The budget for July called for production of 2,000 units with 6,000 direct labor hours at $40.00 per hour (SP) .

Ally's direct labor efficiency variance for July, to the nearest dollar, was:

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Definitions:

Superior Rights

Rights that are given priority or are considered more important compared to others within a legal context.

Third-party

An individual or group besides the two involved in a transaction or legal matter.

Possession

The actual holding or control of property, whether owned or not.

Engine

A machine designed to convert energy into useful mechanical motion to power vehicles, generators, and other devices.

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