Ally Mfguses a Standard Cost System and Its July Production of of 1,800

question 27

Multiple Choice

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.The budget for July called for production of 2,000 units with 6,000 direct labor hours at $40.00 per hour.
Ally's direct labor efficiency variance for July is:

• A)$2,000 unfavorable.
• B)$4,000 unfavorable.
• C)$20,000 favorable.
• D)$22,000 unfavorable.
• E)$26,000 unfavorable.

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Definitions:

Civil War

A war between factions or regions within the same country, often centered on disputes over governance, territory, or ideology.

Freed Slaves

Individuals who were liberated from slavery, particularly in the context of the American Civil War and the Emancipation Proclamation.

Assassinated

The act of killing someone suddenly and deliberately, especially a prominent or important person, for political or ideological reasons.

Lincoln

The 16th President of the United States, Abraham Lincoln, who led the country during the Civil War and worked to abolish slavery.