Multiple Choice
Pardoe Inc. ,manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours.The company uses a standard cost system and has established the following standards for one unit of product: 
During March,the following activity was recorded by the company: • The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month;at the end of the month,2,000 pounds of material remained in the warehouse.
• During March,1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
The direct materials purchases variance is computed when the materials are purchased.
The labor efficiency variance for March is:
A) $5,040 U
B) $1,200 U
C) $1,200 F
D) $5,040 F
Correct Answer:
Verified
Correct Answer:
Verified
Q69: Blaster Inc., manufactures portable radios. Each radio
Q132: During July, Heron Corporation plans to serve
Q183: During January, Desousa Clinic plans for an
Q277: Directly comparing a static planning budget to
Q357: Vanderhyde Kennel uses tenant-days as its measure
Q358: Epley Corporation makes a product with the
Q359: Tout Corporation makes a product that has
Q364: The following labor standards have been established
Q366: Berends Corporation makes a product with the
Q367: Federick Clinic uses client-visits as its measure