The Following Data Relate to Direct Labor Costs for the Current

question 4

Multiple Choice

The following data relate to direct labor costs for the current period: Standard costs
7,500 hours at $11.70
Actual costs
6,000 hours at $12.00
The direct labor time variance is

• A)$18,000 favorable
• B)$18,000 unfavorable
• C)$17,550 unfavorable
• D)$17,550 favorable

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.

Confidence Interval

An estimated range of values which is likely to include an unknown population parameter, calculated from a given set of sample data.

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating a range within which the true value lies at a certain confidence level.

Probability

The extent to which an event is likely to occur, measured by the ratio of the favorable cases to the whole number of cases possible.