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Use the following to answer questions 101-105: Sheldon Company manufactures only one product and uses a standard cost system.
Use the following to answer questions 101-105: 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 The firm allows 5 standard direct labor hours per unit and its standard direct labor hourly rate is $50. During the month, Sheldon used 25 percent more direct labor hours than the standard allowed. What was the direct labor flexible budget variance for the month? A. B. C. D. E. $20,000 unfavorable.
