Taylor Enterprises purchased 56,000pounds (cost= $420,000) of directmaterial to be used in the manufactureof the company's sole product.According the production specifications,each completed unit requires fivepounds of direct material at a standardcost of $7.80 per pound. Direct materialsconsumed by the end of the periodtotaled 53,500 pounds in themanufacture of 10,900 finished units.An examination of Taylor's payrollrecords revealed that the companyworked 22,000 labor hours (cost=$319,000) during the period, andspecifications called for each completedunit requiring two hours of labor at astandard cost of $14.80 per hour.Assume that the company computesvariances at the earliest point in time.Taylor's direct-labor efficiency variancewas:A. $2,900FB. $2,900UC. $2,960FD. $2,960UE. None of the answers are correct.

Direct labor efficiency variance is calculated on the difference between standard hours and actual…

Taylor 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.

Taylor 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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