Direct Labor Standards at Cepeda Manufacturing Corporation Allow 5 Direct

Multiple Choice

Direct labor standards at Cepeda Manufacturing Corporation allow 5 direct labor-hours for every unit produced. The standard direct labor rate is $12.00 per hour. During the month of February, Cepeda incurred 35,000 direct labor-hours and recorded a $15,000 favorable labor efficiency variance. How many units did Cepeda produce during February?

A) 6,750
B) 7,250
C) 33,750
D) 36,250