Gant Co Manufactures a Product with a Standard Direct Labor Cost

question 201

Multiple Choice

Gant Co. manufactures a product with a standard direct labor cost of two hours at $24.00 per hour. During July, 2,000 units were produced using 4,200 hours at $24.40 per hour. The labor price variance was

• A) $1,680 U.
• B) $6,480 U.
• C) $6,480 F.
• D) $4,800 U.

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Definitions:

Placebo Effect

The phenomenon by which patients experience a perceived or actual improvement in their condition solely due to their belief in the efficacy of a treatment, regardless of its actual therapeutic value.

Illusory Correlation

The cognitive bias of perceiving a relationship between variables (typically people, events, or behaviors) even when no such relationship exists.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.

Laboratory Environment

A controlled setting designed for scientific experiments, research, or testing, often equipped with specific instruments and materials.