Joe Malay Received the Following Report on the Division's Operation

question 7

Multiple Choice

Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable.Direct labor efficiency variance = $70,000 (?) The standard calls for 3 direct labor hours per unit of output at $28 per labor hour.The standard direct labor hours for the units manufactured is 20 percent more than the total direct labor hours actually worked in August.What were the total standard hours allowed for the units manufactured in August?

• A)10,000.
• B)12,000.
• C)12,500.
• D)15,000.
• E)15,625.

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Definitions:

Recorded

The act of entering financial transactions into the accounting records of a business.

Interest-Bearing Note

A financial instrument that requires the issuer to pay interest in addition to repaying the principal amount at the note's maturity.

Maturity

The date on which a financial obligation, such as a bond or loan, is due to be fully paid off.

Obligations

A duty or responsibility to fulfill an agreement, such as financial repayments.