Sheldon Company manufactures only one product and uses a standard cost system. During the past...
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Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances: direct labor rate variance = $67,500 favorable; direct labor efficiency variance = $90,000 unfavorable. Sheldon allows 5 standard direct labor hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 20% more direct labor hours than the standard allowed for the output achieved.
What was the direct labor flexible-budget (FB) variance for the month?
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