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Business, 08.04.2021 21:20 googoo4

The static budget for the month of May was 9,000 units with direct materials at $15 per unit. Direct labor was budgeted at 45 minutes per unit for a total of $ 81,000. Actual output for the month was 8,500 units with $ 127,500 in direct materials and $ 77,775 in direct labor expense. The direct labor standard of 45 minutes was maintained throughout the month. Variance analysis of the performance for the month of May shows a(n) A. Favorable direct materials usage variance of $ 7,500. B. Favorable direct labor efficiency variance of $ 1,275. C. Unfavorable direct labor efficiency variance of $ 1,275. D. Unfavorable direct labor price variance of $ 1,275.

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The static budget for the month of May was 9,000 units with direct materials at $15 per unit. Direct...
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