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:

Psychosexual Development

A Freudian theory that proposes that child development occurs in a series of stages which are characterized by sexual pleasures focusing on different parts of the body.

Flirtatious

Exhibiting behavior aimed at attracting or engaging someone romantically or sexually through acts or remarks that suggest interest without explicit intention.

Oral Stage

In psychoanalytic theory, the first stage in a child's psychosexual development, occurring in the first year, where the mouth is the primary focus of pleasurable sensations.

Psychosexual Development

Sigmund Freud's theory outlining how personality develops through five childhood stages, each focused on sexual pleasure derived from a particular part of the body.