Assembly Line Workers at Thompson Manufacturing Worked a Total of 8,800

question 63

Multiple Choice

Assembly line workers at Thompson Manufacturing worked a total of 8,800 direct labor hours to produce 36,000 units. The standard for producing one unit is 15 minutes at a wage rate of $10. If the actual wage rate was $10.50 per direct labor hour, Thompson’s direct labor efficiency variance is

• A) $2,000 favorable
• B) $2,000 unfavorable
• C) $2,100 favorable
• D) $2,100 unfavorable

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Definitions:

Glycolysis

A metabolic pathway that breaks down glucose into pyruvate, producing energy in the form of ATP.

Net Yield

The final return on an investment after subtracting all costs, taxes, and expenses.

Citric Acid Cycle

A key metabolic pathway that oxidizes nutrients to produce energy, CO2, and water, also known as the Krebs cycle or TCA cycle, essential for aerobic respiration.