Sheldon Company Manufactures Only One Product and Uses a Standard

question 144

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 were the total actual direct hours worked?

• A)1,000.
• B)3,000.
• C)4,000.
• D)5,000.
• E)6,000.

---

Definitions:

Electrical Service

Maintenance, repair, and installation services provided for electrical systems and components in buildings and infrastructure.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials that fluctuate with production volume.

Room Nights

A measure in the hospitality industry, representing the total number of nights that guests have booked to stay in a hotel.