The Cool Hand Company Makes Tables for Which the Following

question 1

Multiple Choice

The Cool Hand Company makes tables for which the following standards have been developed: $$\begin{array} { l l l } & \text { Standard Inputs } & \text { Standard Price } \\& \text { Expected for E ach } & \text { Expected per } \\& \text { Unit of Output } & \text { Unit of Output } \\\text { Direct materials } & 17 \text { pounds } & \$ 5.20 \text { per pound } \\\text { Direct labor } & 3 \text { hours } & \$ 16 \text { per hour }\end{array}$$ Production of 200 tables was expected in May, but 220 tables were actually completed. Direct materials purchased and used were 2,100 pounds at an actual price of $4.40 per pound. Direct labor cost for the month was $10,620, and the actual pay per hour was $18.00. _ is the direct- labor price variance for the month of May.

• A) $1,200 favorable
• B) $1,180 favorable
• C) $1,180 unfavorable
• D) $1,200 unfavorable

---

Definitions:

Bounded Rationality

A concept suggesting that individuals make decisions based on limited information, limited time, and their own limited cognitive processing capacity.

Biopsychologist

An expert in the field of biopsychology, analyzing how the brain, neurons, and nervous system influence thoughts, behaviors, and emotions.

Unconscious Thoughts

Relates to ideas, memories, and desires that are outside of conscious awareness but can influence behavior and emotions.

Brain Damage

Physical harm to the brain that can result from injury, illnesses, or conditions, often leading to temporary or permanent impairment of cognitive, physical, and psychological functions.