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:

Structuralism

A framework in psychology that emphasizes analyzing the basic elements of consciousness to understand the structure of the mind.

Functionalism

A theory in psychology that emphasizes the purpose and function of behavior and consciousness to adapt to the environment.

Introspection

The examination or observation of one's own mental and emotional processes.

Behavior

The actions or reactions of an individual, in response to external or internal stimuli, encompassing physical and mental processes.