Berea Company Produces 2,500 Units

question 145

Multiple Choice

Berea Company produces 2,500 units.Each unit was expected to require 2 labor hours at a cost of $10 per hour.Total labor cost was $55,250 for 4,750 hours worked.Direct labor is measured in hours._____ is the direct-labor quantity variance.

• A)$2,750 favorable
• B)$2,750 unfavorable
• C)$2,500 favorable
• D)$2,500 unfavorable

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Definitions:

Directional Alternative

A hypothesis that outlines the anticipated direction in the variation or association among variables.

T-statistic

A T-statistic is used in statistical testing to determine the significance of the difference between the means of two groups relative to the spread or variability of their scores.

Means

Statistical measures that represent the average value in a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.

Null Hypothesis

The default hypothesis that there is no effect or no difference, and any observed deviation from this state is due to chance.