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:

Negotiation-Of-Selves Conflict

A psychological conflict that arises when an individual's different social roles or selves are in opposition, requiring negotiation or compromise among them.

Lose-Lose Strategy

A strategy in which everyone gives up something, and the focus is on compromise.

Compromise

An agreement or settlement of a dispute that is reached by each side making concessions.

Industrial Economy

A system characterized by large-scale, automated manufacturing, capital-intensive production, and the significant role of the industry sector in economic activities.