Ask Question
BusinessBusiness
11 March, 16:42

Benson Company manufactures special metallic materials for luxury homes that require highly skilled labor. Benson uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 2 pounds per unit; $4 per pound Direct labor: 5 hours per unit; $14 per hour Benson produced 5,000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 30,000 direct labor hours and actual total direct labor costs were $225,000. What is the direct labor efficiency variance? A. $70,000 F 0 B. $70,000 U O C. $125,000 F O D. $125,000 U

+3
Answers (1)
  1. 11 March, 17:15
    0
    The correct answer is B.

    Explanation:

    Giving the following information:

    For the first quarter of the year, direct labor standards for one of their popular products were as follows:

    Direct labor: 5 hours per unit; $14 per hour

    Benson produced 5,000 units during the quarter.

    At the end of the quarter, an examination of the labor costs records showed that the company used 30,000 direct labor hours and actual total direct labor costs were $225,000.

    Direct labor efficiency variance = (SQ - AQ) * standard rate

    Direct labor efficiency variance = (25,000 - 30,000) * 14 = $70,000 unfavorable
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Benson Company manufactures special metallic materials for luxury homes that require highly skilled labor. Benson uses standard costs to ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
For Megan's end-of-year performance appraisal, her supervisor solicited feedback from three of Megan's coworkers, the manager of the customer-service department, several of Megan's clients, and even a few employees in other departments with whom she
Answers (1)
Suppose the government were to replace the income tax with a consumption tax so that interest on savings was not taxed. The result would be that the interest rate
Answers (2)
Which of the following statements is true-assuming that no additional deposits or withdrawals are made?
Answers (1)
Problem page a washer and a dryer cost $750 combined. the cost of the washer is two times the cost of the dryer. what is the cost of the dryer?
Answers (2)
A company has net credit sales of $94,000, beginning net accounts receivable of $22,000 and ending net accounts receivable of $18,000. Calculate the days' sales in receivables.
Answers (1)
New Questions in Business
Culture is important in communication because a competent speaker ... A. tries to be sensitive to all cultures represented B. is knowledgeable about every culture C. avoids cultural topics D. defends his/her own culture
Answers (1)
Bancroft & Morrison Inc., as an organization, believes that it should always be prepared for the future.
Answers (1)
In Year 1, Costello Company performed work for a customer and billed the customer $14,000. In Year 2, the customer pays Costello Company for the services it rendered in Year 1.
Answers (1)
What is the difference between a business model and an ebusiness model? Multiple Choice An ebusiness model details how a company creates, delivers, and generates revenue;
Answers (1)
How accurately do gdp statistics portray the economy and why?
Answers (1)
Home » Business » Benson Company manufactures special metallic materials for luxury homes that require highly skilled labor. Benson uses standard costs to prepare its flexible budget.
Sign Up Forgot Password?