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Sheldon Company Manufactures Only One Product and Uses a Standard

Question 70

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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.How many units of the product were produced during the past month?


A) 800.
B) 1,000.
C) 1,200.
D) 1,500.
E) 2,000.

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