A Job Was Budgeted to Require 3 Hours of Labor

question 86

Multiple Choice

A job was budgeted to require 3 hours of labor per unit at $11.00 per hour.The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $269,500.What is the direct labor efficiency variance?

• A)$27,500 unfavorable.
• B)$22,000 unfavorable.
• C)$16,000 unfavorable.
• D)$22,000 favorable.
• E)$6,000 unfavorable.

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Definitions:

Liberating Mercury

The process of releasing mercury, typically from its ores or as a byproduct of industrial processes, which can lead to environmental contamination.

HgO

HgO refers to mercury(II) oxide, a solid compound consisting of mercury and oxygen, known for decomposing into mercury and oxygen gas when heated.

Methane Gas

A colorless, odorless flammable gas that is a major component of natural gas, used as a fuel and in the production of various chemicals.

Carbon Dioxide

A gas characterized by its lack of color and smell, produced when carbon and organic compounds burn, and during the respiration process, which plants absorb in photosynthesis.