Joe Malay Received the Following Report on the Division's Operation

question 119

Multiple Choice

Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable; Direct labor efficiency variance = $70,000 (?) . The standard calls for 3.0 direct labor hours per unit of output at $28.00 per labor hour (SP) . The standard direct labor hours allowed for the units manufactured (SQ) is 20 percent more than the total direct labor hours worked (AQ) in August.

What were the total standard hours allowed (SQ) for the units manufactured in August (to the nearest whole number) ?

• A) 10,000.
• B) 12,000.
• C) 12,500.
• D) 15,000.
• E) 15,625.