Assume the following information appears in the standard cost card for a company that makes only one product: Standard. Quantity or Hours: 5 pounds 2 hours 2 hours Direct materials Direct labor Variable manufacturing Standard Price or Rate $11.00 per pound $ 17.00 per hour $ 3.00 per hour. overhead During the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. . All of the material that was purchased was used to produce 3,900 units. . 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct labor efficiency variance? Standard. Cost $ 55.00 $ 34.00 $ 6.00

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume the following information appears in the standard cost card for a company that makes only one product:
Standard.
Quantity
or Hours Standard Price or Rate
Direct materials.
Direct labor
Variable manufacturing overhead
What is the direct labor efficiency variance?
During the most recent period, the following additional information was available:
• 20,000 pounds of material was purchased at a cost of $10.50 per pound.
. All of the material that was purchased was used to produce 3,900 units.
. 8,000 direct labor-hours were recorded at a total cost of $132.000.
Multiple Choice
O $3,400 F
5 pounds
2 hours
2 hours
$3,400 U
$ 11.00 per pound
$ 17.00 per hour
$ 3.00 per hour
Standard
Cost
$ 55.00
$ 34.00
$6.00
Transcribed Image Text:Assume the following information appears in the standard cost card for a company that makes only one product: Standard. Quantity or Hours Standard Price or Rate Direct materials. Direct labor Variable manufacturing overhead What is the direct labor efficiency variance? During the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. . All of the material that was purchased was used to produce 3,900 units. . 8,000 direct labor-hours were recorded at a total cost of $132.000. Multiple Choice O $3,400 F 5 pounds 2 hours 2 hours $3,400 U $ 11.00 per pound $ 17.00 per hour $ 3.00 per hour Standard Cost $ 55.00 $ 34.00 $6.00
48
What is the direct labor efficiency variance?
Multiple Choice
$3,400 F
$3,400 U
$3,300 F
$3,300 U
Transcribed Image Text:48 What is the direct labor efficiency variance? Multiple Choice $3,400 F $3,400 U $3,300 F $3,300 U
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