LVN Corporation's Direct Labor Costs and Related Information for the Month

question 43

Multiple Choice

LVN Corporation's direct labor costs and related information for the month of June were as follows: What is LVN Corporation's direct labor efficiency variance?

• A)$16,500 favorable
• B)$16,500 unfavorable
• C)$7950 unfavorable
• D)$7950 favorable

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Definitions:

Machine Setups

The process of preparing and adjusting machines for a specific production task, which can influence production efficiency and costs.

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid.

Variable Cost

A rephrased definition: Costs that fluctuate with the level of activity or output, such as cost of raw materials used in production.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the distances of data points from the line.