Sheldon Company Manufactures Only One Product and Uses a Standard

question 70

Multiple Choice

Sheldon Company manufactures only one product and uses a standard cost system.During the past month,the manufacturing operations had the following variances: Direct labor rate variance $30,000 Favorable.Direct labor efficiency variance 50,000 Unfavorable Sheldon allows 5 standard direct labor hours per unit produced,and its standard direct labor hourly rate is $50.During the month,the company used 25 percent more direct labor hours than the standard allowed.How many units of the product were produced during the past month?

• A)800.
• B)1,000.
• C)1,200.
• D)1,500.
• E)2,000.

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Definitions:

Appropriate Action

The decision or behavior deemed suitable for a specific situation or context, especially relating to leadership or management.

Organizational Culture

The set of shared values, beliefs, behaviours, and norms that define an organization, influencing how people interact and work together.

Authoritarian Decision Making

A leadership approach where decisions are made unilaterally by those in power, with little to no input from subordinates.

Lateral Decision Making

The process through which decisions are made by peers at the same level in a hierarchy, rather than top-down.