The Lennon Company Uses a Standard Costing System and a Flexible

question 90

Multiple Choice

The Lennon Company uses a standard costing system and a flexible budget. At a normal level of activity of 15,000 units and 45,000 standard direct labor hours, the standard direct labor cost would be $270,000. During June, 44,950 hours were worked to produce 14,000 units at an actual direct labor cost of $352,000. The direct labor efficiency variance in June was

• A) $25,700 (U).
• B) $17,700 (U).
• C) $17,700 (F).
• D) $20,700 (U).

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Definitions:

First lumbar vertebra

The topmost vertebra of the lumbar section of the spine, which supports the lower back.

Gyri

The ridges of brain matter between the sulci; also called convolutions.

Sulci

The grooves on the surface of the cerebrum.

Gray matter

The dark-colored regions of the brain and spinal cord consisting mainly of neuronal cell bodies and dendrites, involved in processing and integrating information.