Shade Company Adopted a Standard Cost System Several Years Ago

question 162

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 x $12.00 per kilogram) = $60.00/unit.Direct labor (3.5 hours x $20.00 per hour) = $70.00/unit.All materials were 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 is:

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

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Definitions:

Syncline

A fold in rock layers where the youngest layers are closer to the center of the structure, typically shaped like a trough.

Limestone

A sedimentary rock composed primarily of calcium carbonate (CaCO3) in the form of the mineral calcite, often formed from the skeletal fragments of marine organisms.

Sandstone

A sedimentary rock composed mostly of sand-sized minerals or rock grains.

Shales

Fine-grained sedimentary rocks formed from silt and clay particles, known for their ability to split into thin layers.