Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product.
During May, Jackson purchased 125,000 pounds of direct material at a total cost of $475,000. The total factory wages for May were $364,000, 90 percent of which were for direct labor. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct material and 28,000 direct labor-hours.
-The labor efficiency variance for May is:
Definitions:
Labor Rights
Legal rights and protections afforded to workers, including the right to fair wages, safe working conditions, and freedom from discrimination and harassment.
Sherman Antitrust Act
A landmark federal statute passed in the United States in 1890 that prohibits monopolistic business practices and promotes competition.
Monopolies
Market structures characterized by a single seller dominating the entire market for a particular good or service, often leading to reduced competition.
Economic Dominance
A situation where a company, product, or country has enough market power to influence market conditions or prices on a large scale.
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