Thomas Enterprises purchased 56,000 pounds (cost = $420,000) of direct material to be used in the manufacture of the company's sole product. According the production specifications, each completed unit requires five pounds of direct material at a standard cost of $7.80 per pound. Direct materials consumed by the end of the period totaled 53,500 pounds in the manufacture of 10,900 finished units.An examination of Thomas' payroll records revealed that the company worked 22,000 labor hours (cost = $319,000) during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of $14.80 per hour. Assume that the company computes variances at the earliest point in time.Thomas' direct-labor efficiency variance was
A. $2,960F.
B. $2,900F.
C. $2,900U.
D. $2,960U.
E. None of the answers is correct.
Answer: D
You might also like to view...
Carlos knew the restaurant kitchen was violating state codes. If Carlos reported the conditions to the health department, there is a chance the restaurant would have to close or that he could receive backlash from co-workers. What type of challenge was Carlos facing as a follower?
A. challenge of bad news B. challenge of obligation C. challenge of obedience D. challenge of dissent
A financial analyst is responsible for maintaining and controlling a firm's daily cash balances
Indicate whether the statement is true or false
A business may lose the shopkeeper's privilege if: A)the customer is kept an unreasonable amount of time
B)the shopkeeper acted with reasonable suspicion. C)the shopkeeper acted with necessary force. D)the shopkeeper kept the customer over 1 hour.
The strategy of setting prices at uneven amounts that are slightly below an even or whole number of dollars is called
A. penetration pricing. B. price skimming. C. sample pricing. D. introductory pricing. E. odd-number pricing.