The Luke Company Makes Tables for Which the Following Standards

question 14

Multiple Choice

The Luke Company makes tables for which the following standards have been developed: $\begin{array}{cc}&\text { Standard Inputs } & \text { Standard Frice } \\&\text { Expected for Each } & \text { Expected per } \\&\text { Unit of Output } & \text { Unit of Output }\\\hline\text { Direct materials } & 17 \text { pounds } & \$ 5.20 \text { per pound } \\\text { Direct labor } & 3 \text { hours } & \$ 16 \text { per hour }\end{array}$ Production of 200 tables was expected in May, but 220 tables were actually completed. Direct materials purchased and used were 2,100 pounds at an actual price of $4.40 per pound.Direct-labor cost for the month was $10,620, and the actual pay per hour was $18.00._____ is the direct-labor price variance for the month of May.

• A)$1,180 unfavorable
• B)$1,180 favorable
• C)$1,200 unfavorable
• D)$1,200 favorable

---

Definitions:

Classical Conditioning

A process of learning in which, with the consistent coupling of two stimuli, a response that originally required the second stimulus for elicitation is later elicited by the first stimulus solely.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until paired with an unconditioned stimulus in classical conditioning.

Vicarious Punishment

A form of learning where an individual's tendency to perform a behavior is decreased after observing another individual being punished for that behavior.

Mediated

The process by which something is transmitted or carried from one entity or place to another, often through an intervening agent.