Sheldon Company Manufactures Only One Product and Uses a Standard

question 107

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.What was the direct labor flexible-budget (FB) variance for the month?

• A)$20,000 unfavorable.
• B)$25,000 unfavorable.
• C)$37,500 favorable.
• D)$62,500 unfavorable.
• E)$80,000 unfavorable.

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Definitions:

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