The Per-Unit Standards for Direct Labor Are 2 Direct Labor

question 54

Multiple Choice

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1800 units the actual direct labor cost was $48000 for 3000 direct labor hours worked the total direct labor variance is

• A) $1800 unfavorable.
• B) $6000 favorable.
• C) $3750 unfavorable.
• D) $6000 unfavorable.

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Definitions:

Construct Accessibility

The ease with which a particular mental construct can be activated or brought to mind, often influenced by recent experiences or current mood.

Primacy Effect

The inclination to recall data presented at the start of a list more effectively than the subsequent information.

Recency Effect

Tendency to remember information at the end of a body of information better than the information that precedes it.

Group Think

The behavior seen in groups when the urge for peace or uniformity brings about decisions that are improper or not functional.