Machine Builders Inc

question 98

Multiple Choice

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct labor efficiency variance for July, to the nearest dollar, was:

• A) $6,600 favorable.
• B) $7,200 unfavorable.
• C) $8,000 unfavorable.
• D) $14,400 favorable.
• E) $79,200 favorable.

---

Definitions:

Aggregate Expenditure

This is the total spending on final goods and services in an economy, including consumption, investment, government purchases, and net exports.

Disposable Income

The budget households have for expenses and savings after income tax deductions.

Planned Spending

Planned or budgeted expenditures by individuals, companies, or governments anticipated over a certain period.

Planned Output

The expected or targeted level of production set by a company or economy, often based on demand forecasts and capacity planning.