Michael Corporation Manufactures Railroad Cars, Which Is Its Only Product

question 115

Multiple Choice

Michael Corporation manufactures railroad cars, which is its only product. The standards for railroad cars are as follows: During the month of March, the company produced 1300 railroad cars. Related production data for the month follows:
What is the direct labor efficiency variance for the month?

• A)$30,000 favorable
• B)$30,000 unfavorable
• C)$360,000 favorable
• D)$360,000 unfavorable

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