Question
Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances:
Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances: direct labor rate variance = $30,000 Favorable; direct labor efficiency variance = $50,000 unfavorable. Sheldon allows 5 standard direct labor hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 25% more direct labor hours than the standard allowed. How many units of the product were produced during the past month?
800. | ||
1,000. | ||
1,200. | ||
1,500. | ||
2,000. |
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