Gollerowski Company Had the Following Information Available for Its Specialty

question 139

Multiple Choice

Gollerowski Company had the following information available for its specialty product:
Standards for one unit of product:
Direct Materials: 5 pounds at $2 per pound
Direct Labor: 0.50 hour at $16 per hour
Materials and Labor Used to produce 8,500 units:
Direct Materials: 46,000 pounds at 4 per pound
Direct Labor: ? hours at $17 per hour
If the Direct Labor Efficiency Variance is $4,000 Unfavorable,what are the actual number of hours worked?

• A) $4,000
• B) $4,250
• C) $4,400
• D) $4,500

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Definitions:

Temporary Investments

Investments in securities or other assets that are intended to be sold within a short period, typically within a year.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or sold but not yet paid for.

Working Capital

The disparity between a firm's existing resources and its short-term obligations, showcasing its ability to fulfil financial commitments and operational prowess.

Current Assets

Resources anticipated to be transformed into cash, sold off, or used up either within a year or over the span of the business's regular operational cycle, depending on which is more extended.