Sheldon Company Manufactures Only One Product and Uses a Standard

Multiple Choice

Sheldon Company manufactures only one product and uses a standard cost system.During the past month,the manufacturing operations 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 rate is $50.During the month,the company used 25 percent more direct labor hours than the standard allowed.What was the direct labor flexible-budget (FB) variance for the month?

A) $20,000 unfavorable.
B) $25,000 unfavorable.
C) $37,500 favorable.
D) $62,500 unfavorable.
E) $80,000 unfavorable.