Standard Faucets Uses Standard Costing and Recorded the Following Data

question 156

Multiple Choice

Standard Faucets uses standard costing and recorded the following data for the month of August: $\begin{array}{lr}\text { Standard direct labor rate } & \$ 10.00 \text { per hour } \\\text { Standard hours allowed for actual production } & 20,000 \text { hours } \\\text { Actual direct labor rate } & \$ 10.50 \text { per hour } \\\text { Labor efficiency variance } & \$ 5,000 \text { favorable }\end{array}$ How much is the labor rate variance for August?

• A) $9,750 unfavorable
• B) $14,750 unfavorable
• C) $4,750 unfavorable
• D) $0

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Definitions:

Sample Proportion

The fraction of the sample that represents a particular outcome or characteristic.

Confidence Interval

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter.

Sample Variance

A measure of the dispersion or spread of data points in a sample, calculated by taking the average of the squared differences from the mean.

Central Limit Theorem

A statistical theory stating that the distribution of sample means will approximate a normal distribution as the sample size becomes large, regardless of the population's distribution.