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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 = $59,040 favorable (F); direct labor efficiency variance = $82,000 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 units produced. Problem 1: How many units of the product were produced during the past month (rounded to the nearest whole number)?
Multiple Choice Option 1: 1,968. Option 2: 1,640. Option 3: 3,280. Option 4: 2,296. Option 5: 4,100.
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