Use the Following Data to Find the Direct Labor Efficiency

question 69

Multiple Choice

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $7/hr.) $ 28 per unit Actual hours worked 12,250
Actual rate per hour $ 7.50

• A) $12,250 favorable.
• B) $6,125 unfavorable.
• C) $6,125 favorable.
• D) $7,000 unfavorable.
• E) $7,000 favorable.

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Definitions:

Proposition

A formulated idea or plan suggested for acceptance; a plan of action.

Standard Form

A recognized format for presenting information or arguments in a structured and consistent manner.

Pure Hypothetical

A scenario or statement based solely on conjecture without any factual basis or actual case reference.

Disjunctive

Pertaining to a logical relation involving a choice between two or more alternatives, often expressed as an "or" statement in logic.