Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The sales volume variance, measured in terms of direct labor cost, for July (to the nearest dollar) was:
A) $6,600 favorable.
B) $7,200 favorable.
C) $51,000 unfavorable.
D) $57,600 unfavorable.
E) $72,000 unfavorable.

Question

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The sales volume variance, measured in terms of direct labor cost, for July (to the nearest dollar) was:
A) $6,600 favorable. 
B) $7,200 favorable. 
C) $51,000 unfavorable. 
D) $57,600 unfavorable. 
E) $72,000 unfavorable.

Quizplus · Accepted Answer

The Answer of Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The sales volume variance, measured in terms of direct labor cost, for July (to the nearest dollar) was:
A) $6,600 favorable. 
B) $7,200 favorable. 
C) $51,000 unfavorable. 
D) $57,600 unfavorable. 
E) $72,000 unfavorable.