A Company Uses the Following Standard Costs to Produce a Single

question 20

Multiple Choice

A company uses the following standard costs to produce a single unit of output. $$\begin{array} { l l l } \text { Direct materials } & 6 \text { pounds at } \$ 0.90 \text { per pound } & = \$ 5.40 \\\text { Direct labor } & 0.5 \text { hour at } \$ 12.00 \text { per hour } & = \$ 6.00 \\\text { Manufactuning overhead } & 0.5 \text { hour at } \$ 4.80 \text { per hour } & = \$ 2.40\end{array}$$ During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled
$56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.
-Based on this information, the direct labor efficiency variance for the month was:

• A) $3,650 favorable
• B) $2,450 unfavorable
• C) $2,450 favorable
• D) $1,200 unfavorable
• E) $1,200 favorable

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Definitions:

Adolescent Boys

Male individuals typically between the ages of 13 and 19, undergoing physical, psychological, and emotional changes during the transition from childhood to adulthood.

Sexual Activity

Any behavior that involves sexual organs or the sexual stimulation of oneself or a partner, ranging from intercourse to non-penetrative actions.

Attachment

A deep and enduring emotional bond that connects one person to another across time and space.

Insecurity

Describes feelings of uncertainty or anxiety about oneself; lack of confidence.