Use the Information Below to Answer the Following Question(s)

question 171

Multiple Choice

Use the information below to answer the following question(s) .
The following data for a pottery company pertain to the production of 2,000 clay pots during July.
Direct Materials (all materials purchased were used) :
Standard cost: $6.00 per kilogram of clay
Total actual cost: $11,200
Standard cost allowed for units produced was $12,000
Materials efficiency variance was $240 unfavourable
Direct Manufacturing Labour:
Standard cost is 2 pots per hour at $24.00 per hour
Actual cost per hour was $24.50
Actual labour was 972 hours
-What is the direct manufacturing labour efficiency variance?

• A) $672 unfavourable
• B) $500 favourable
• C) $672 favourable
• D) $500 unfavourable

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Definitions:

Economic Plunge

A sudden and sharp decline in economic activity, often characterized by a decrease in GDP, investment, and employment.

Tax Rates

The percentages at which income, property, and sales are taxed by governments.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.

Tax Rates

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of income, and jurisdiction.