The First Unit Took 10 Hours and the Third Unit

question 111

Multiple Choice

The first unit took 10 hours and the third unit took 5.7 hours. What is the improvement rate?

• A) 70%
• B) 30%
• C) 50%
• D) 90%
• E) 10%

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Definitions:

Actual Costs

are the genuine expenditures incurred in the production or acquisition of goods and services, as opposed to estimated or standard costs.

Standard Costs

Pre-determined or benchmark costs for products, operations, or activities, used for budgeting purposes and performance evaluation against actual costs.

Direct Labor Time Variance

The difference between the actual time taken to perform work and the estimated standard time, adjusted for units produced.

Standard Costs

Predetermined costs to manufacture a product or deliver a service, used for budgeting and performance evaluation.