Answer the Following Questions Using the Information Below

question 135

Multiple Choice

Answer the following questions using the information below:
Apple Valley Orchards, Inc. (AVO) , developed standard costs for direct material and direct labor. In 2011, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.
During September, AVO produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00 and 280 direct labor hours at an average wage of $14.25 per hour.
-September's direct labor efficiency variance is:

• A)$280.00 favorable
• B)$280.00 unfavorable
• C)$210.00 favorable
• D)$210.00 unfavorable

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Definitions:

Random Variable

A variable representing numerical results from a chance event.

Standard Normal

A normal distribution with a mean of 0 and a standard deviation of 1, used as a basis for comparing different distributions.

Obtaining

The act of acquiring or securing something.

Standard Normal

A bell-shaped distribution where the mean is 0 and the standard deviation is 1.