A Company Uses the Following Standard Costs to Produce a Single

question 169

Multiple Choice

A company uses the following standard costs to produce a single unit of output. During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct labor efficiency variance for the month was:

• A) $3,650 favorable
• B) $2,450 favorable
• C) $1,200 unfavorable
• D) $1,200 favorable
• E) $2,450 unfavorable

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Definitions:

Dramaturgy

A sociological perspective that likens social life to a theatrical performance, where individuals manage impressions during their interactions.

Erving Goffman

A sociologist noted for his work on symbolic interactionism and the concept of the dramaturgical approach in presenting self in everyday life.

Satirical Newspaper

A publication that uses satire to provide commentary on current events, politics, and societal issues, often employing humor, irony, and exaggeration.

Thomas Pynchon

An American novelist known for his complex and densely structured novels, which often mix elements of satire, postmodernism, and paranoia.