Answer the Following Questions Using the Information Below

question 170

Multiple Choice

Answer the following questions using the information below:
Diana Industries, Inc. (DII) , developed standard costs for direct material and direct labor. In 2010, DII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
During June, DII produced and sold 10,000 containers using 980 pounds of direct materials at an average cost per pound of $32 and 500 direct manufacturing labor-hours at an average wage of $15.25 per hour.
-June's direct manufacturing labor efficiency variance is:

• A)$125 unfavorable
• B)$125 favorable
• C)$7,623.50 unfavorable
• D)None of these answers are correct.

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Definitions:

Shareholder Model

A corporate governance framework where the primary focus is on maximizing the value for shareholders.

Short-Run Profits

Earnings achieved in a short period of time, often prioritized at the expense of long-term sustainability or investment.

Shareholder Wealth

The total value of an investment in a company held by its shareholders, often measured by stock price optimization and dividend payouts.

Property Rights

Legal rights that delineate the ownership and use of property, including intellectual and physical property.