A Company Uses the Following Standard Costs to Produce a Single

question 145

Multiple Choice

A company uses the following standard costs to produce a single unit of output. $$\begin{array} { l l l l } \text { Direct materals } & 6 \text { pourds at } \$ 0.90 \text { per pound } & = & \$ 5.40 \\\text { Direct labor } & 0.5 \text { hour at } \$ 12.00 \text { per hour } & = & \$ 6.00 \\\text { Marufacturing overhead } & 0.5 \text { hour at } \$ 4.80 \text { per hour } & = \$ 2.40\end{array}$$ During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct labor efficiency variance for the month was:

• A)$3,650 favorable
• B)$2,450 favorable
• C)$1,200 unfavorable
• D)$1,200 favorable
• E)$2,450 unfavorable

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Definitions:

Drive and Motivation

The intrinsic and extrinsic factors that propel individuals towards achieving goals and persisting through challenges.

Internal Locus of Control

The belief that one has personal control over their life events and outcomes rather than external forces.

Environmental Factors

Elements outside an organization that can impact its performance, including economic, political, social, technological, legal, and environmental conditions.

Self-Confidence

A person's belief in their own abilities, qualities, and judgement.