Figure 17-7
Orient Company Has Developed the Following Standards for One

question 13

Multiple Choice

Figure 17-7
Orient Company has developed the following standards for one of its products: $\begin{array}{ll}\text { Direct materials } & 10 \text { pounds } \times £ 8 \text { per pound } \\\text { Direct labour } & 6 \text { hours } \times £ 20 \text { per hour } \\\text { Variable overhead } & 6 \text { hours } \times £ 6 \text { per hour }\end{array}$ The following activities occurred during the month of November: $\begin{array}{ll}\text { Materials purchased } & 8,000 \text { pounds costing } £ 70,000 \\\text { Materials used } & 6,500 \text { pounds } \\\text { Units produced } & 600 \text { units } \\\text { Direct labour } & 4,200 \text { hours costing } £ 75,600 \\\text { Actual variable overhead } & £ 26,400\end{array}$ The company records materials price variances at the time of purchase.
-Refer to Figure 17-7. Orient's labour rate variance would be

• A)£12,000 unfavourable.
• B)£12,000 favourable.
• C)£8,400 favourable.
• D)£3,600 unfavourable.

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Definitions:

Shaping

A method of operant conditioning where successive approximations of a desired behavior are reinforced until the exact behavior is achieved.

Complex Sequence

A series of numbers or events which follow a specific pattern that is not immediately obvious.

Animal Trainers

Professionals who use behavior modification techniques to teach animals specific responses to specific conditions or stimuli.

Successive Approximations

A technique in behavior modification that rewards behaviors that progressively get closer to the desired one.