A Company Uses the Following Standard Costs to Produce a Single

question 140

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:

Libel

A written defamation which unjustly harms someone's reputation.

Public Figures

Individuals who are widely recognized by the public due to their positions, actions, or accomplishments, often subject to increased media attention.

Standards

Guidelines or criteria that are widely accepted and used to measure or ensure quality and consistency across various domains.

Free Exercise Clause

A component of the First Amendment to the U.S. Constitution guaranteeing the right to practice one's religion freely without government interference.