Figure 17-5
Ebola Company Has Developed the Following Standards for One

question 20

Multiple Choice

Figure 17-5
Ebola Company has developed the following standards for one of its products: $\begin{array}{ll}\text { Direct materials } & 20 \text { pounds } \times £ 4 \text { per pound } \\\text { Direct labour } & 5 \text { hours } \times £ 18 \text { per hour } \\\text { Variable overhead } & 5 \text { hours } \times £ 4 \text { per hour }\end{array}$ The following activities occurred during the month of October: $\begin{array}{ll}\text { Materials purchased } & 230,000 \text { pounds at } £ 4.20 \text { per pound } \\\text { Materials used } & 220,000 \text { pounds } \\\text { Units produced } & 10,000 \text { units } \\\text { Direct labour } & 51,000 \text { hours at } £ 17.70 \text { per hour } \\\text { Actual variable overhead } & £ 240,000\end{array}$ The company records materials price variances at the time of purchase.
-Refer to Figure 17-5. Ebola's labour efficiency variance would be

• A)£18,000 favourable.
• B)£18,000 unfavourable.
• C)£17,700 unfavourable.
• D)£17,700 favourable.

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Definitions:

At-bats

A statistical count in baseball that represents the number of times a player gets in position to bat, excluding walks, sacrifices, and certain other situations.

Probability

The measure of how likely an event is to occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

30 Simulation Runs

Refers to executing a simulation model 30 times to assess variability or estimate the reliability of the simulation results.

Math Test Scores

Numerical data representing individuals' performance levels on mathematics examinations, typically used to evaluate knowledge or proficiency.