Efficient Corporation Uses a Standard Cost System Refer to the Information Provided for Efficient Corporation

question 99

Multiple Choice

Efficient Corporation uses a standard cost system. The following information was provided for the period that just ended: $\begin{array}{ll}\$ 11.75 & \text { Actual price per gallon } \\5,000 & \text { Actual gallons of material used } \\\$ 17.00 & \text { Actual hourly labor rate } \\24,300 & \text { Actual hours of prochuction } \\\$ 12.00 & \text { Standard price per gallon } \\1 / 2 & \text { Standard gallons per completed urit } \\\$ 12.00 & \text { Standard hourly labor rate } \\3 \mathrm{hrs} . & \text { Standard time per completed urit } \\9,000 & \text { Units completed churingthe period }\end{array}$ Refer to the information provided for Efficient Corporation. The total direct labor variance is:

• A) $216,000 favorable.
• B) $32,400 favorable.
• C) $89,100 unfavorable.
• D) $121,500 unfavorable.

---

Definitions:

Texting While Driving

The act of composing, sending, or reading text messages, emails, or making similar use of the web on a mobile phone while operating a motor vehicle.

Economically Efficient

A situation in which resources are allocated in a way that maximizes the net benefit to society.

Marginal Private Benefit

Marginal Private Benefit is the additional benefit or satisfaction received by consumers or producers for consuming or producing one more unit of a good or service.

Marginal Private Cost

The cost incurred by a firm or individual resulting from producing one more unit of a good, excluding externalities or effects on third parties.