The Petunia Company Makes Mugs for Which the Following Standards

question 48

Multiple Choice

The Petunia Company makes mugs for which the following standards have been developed: $\begin{array}{cc}&\text { Standard Inputs } & \text { Standard Frice } \\&\text { Expected for Each } & \text { Expected per } \\&\text { Unit of Output } & \text { Unit of Output }\\\text { Direct materials } & 5 \text { ounces } & \$ 2 \text { per ounce } \\\text { Direct labor } & 2.5 \text { hours } & \$ 8 \text { per hour }\end{array}$ Production of 400 mugs was expected in August, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct-labor cost for the month was $5,310, and the actual pay per hour was $9.00._____ is the standard labor cost for each mug produced.

• A)$22.50
• B)$20
• C)$10
• D)$1

---

Definitions:

Persuasion Attempt

An effort made to convince or influence someone to change their beliefs, attitudes, or behaviors through argument, appeal, or reasoning.

Components

Fundamental parts or elements that combine to form a whole system or structure.

Attribute

A quality or feature regarded as a characteristic or inherent part of someone or something.

Social Influence

An interaction process in which one person’s behavior causes another person to change an opinion or to perform an action that he or she would not otherwise do.