Discover Motor Company Uses a Standard Cost System to Collect

question 130

Multiple Choice

Discover Motor Company uses a standard cost system to collect costs related to the production of its toothpick motors. The direct labor standard for each toothpick motor is 1.25 hours at a standard cost of $9.50 per hour.
During the month of May, Discover's toothpick motor production used 5,900 direct labor-hours at a total direct labor cost of $54,575. This resulted in production of 4,800 toothpick motors for May. What is Discover's labor efficiency variance for the month of May?

• A) $950 favorable
• B) $1,475 favorable
• C) $8,975 unfavorable
• D) $10,450 unfavorable

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Definitions:

Survey

A research method that involves collecting data from a predefined group of respondents to gain information and insights on various topics.

Deceptive Procedures

Methods used in research that involve misleading participants about the true purpose of a study or experiment.

Ethical Guidelines

A set of principles designed to help professionals conduct business honestly and with integrity, particularly in research and clinical practices.

Peer Review

A process used in academic and professional fields where work is evaluated by one or more people with similar competences as the producers of the work.