The Per-Unit Standards for Direct Labor Are 1

question 13

Multiple Choice

The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing 2400 units the actual direct labor cost was $46000 for 3000 direct labor hours worked the total direct labor variance is

• A) $2400 unfavorable.
• B) $8000 favorable.
• C) $5000 unfavorable.
• D) $8000 unfavorable.

---

Definitions:

Normative Statements

Claims that attempt to prescribe how the world should be.

Normative Statements

Claims that express judgments about what ought to be, incorporating opinions and values rather than factual assertions.

Positive Statements

Factual statements about the world that can be tested and validated; they describe "what is" rather than "what ought to be."

Normative Statement

An opinion or judgment that reflects what one believes ought to be, as opposed to what actually is; it cannot be proven true or false.