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german
2 years ago
4

During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produ

ce 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 company uses the following standard costs to produce a single unit of output. Direct materials 6 pounds at $0.90 per pound = $5.40 Direct labor 0.5 hour at $12.00 per hour = $6.00 Manufacturing overhead 0.5 hour at $4.80 per hour = $2.40 A. $3,650 favorable B. $2,450 favorable C. $1,200 unfavorable D. $1,200 favorable E. $2,450 unfavorableDuring 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 company uses the following standard costs to produce a single unit of output. Direct materials 6 pounds at $0.90 per pound = $5.40 Direct labor 0.5 hour at $12.00 per hour = $6.00 Manufacturing overhead 0.5 hour at $4.80 per hour = $2.40 A. $3,650 favorable B. $2,450 favorable C. $1,200 unfavorable D. $1,200 favorable
Business
1 answer:
OLga [1]2 years ago
8 0

Answer:

The correct answer is $1,200 favorable

Explanation:

Giving the following information:

Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Direct labor 0.5 hour at $12.00 per hour = $6.00.

The produce is 10,000 units of output

Direct labor efficiency variance= (SQ - AQ)* SR

SQ= standard quantity

AQ= actual quantity

SR= standard rate

Direct labor efficiency variance= (5000 - 4900)*12= $1,200 favorable

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                               Job 765        Job 766

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