Paulson Corporation Manufactures Tablecloths,which Is Its Only Product During the Month of September,the Company Produced 1,000 Tablecloths

question 86

Multiple Choice

Paulson Corporation manufactures tablecloths,which is its only product.The standards for tablecloths are as follows: $$\begin{array} { | l | r | } \hline \text { Standard direct materials cost per yard } & \$11 \\\hline \text { Standard direct materials quantity per tablecloth (yards) } & 2\\\hline \text { Standard direct labor cost per hour } & \$15\\\hline \text { Standard direct labor hours per tablecloth } & 0.5 \\\hline\end{array}$$ During the month of September,the company produced 1,000 tablecloths.Related production data for the month follows:
$\begin{array} { | l | r | } \hline \text { Actual yards of direct material purchased } & 2,200 \\\hline \text { Actual direct materials total cost } & \$ 22,900 \\\hline \text { Actual direct labor hours } & 2,100 \\\hline \text { Actual direct labor cost incurred } & \$ 17,850 \\\hline\end{array}$
- What is the direct labor efficiency variance for the month?

• A)$ 13,650 favorable
• B)$ 13,650 unfavorable
• C)$ 24,000 favorable
• D)$ 24,000 unfavorable

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