Sunset Beverages Gathered the Following Information for Job #341

question 44

Multiple Choice

Sunset Beverages gathered the following information for Job #341:

-What is the direct labour efficiency variance at Sunset Beverages?

• A) $145 favourable
• B) $150 unfavourable
• C) $150 favourable
• D) $145 unfavourable

---

Definitions:

Reconciled

The process of making sure that two sets of records (usually the balances of two accounts) are in agreement.

Step-fixed Costs

Costs that remain fixed over a range of activity, but jump to a higher level of expense at certain points when activity levels require it.

Variable Cost

Costs that vary directly with the level of production output or business activity, such as materials and labor directly involved in producing a product.

Inflationary Price Increase

A rise in prices across an economy, often due to an increase in the money supply or demand outstripping supply, reducing the purchasing power of money.