Action Enterprises Recently Used 14,000 Labor Hours to Produce 7,500

question 40

Multiple Choice

Action Enterprises recently used 14,000 labor hours to produce 7,500 completed units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The company's actual payroll cost amounted to $158,200. If the standard labor cost per hour is $11, Action's labor rate variance is:

• A) $4,200U.
• B) $4,000F.
• C) $4,300U.
• D) $4,300F.
• E) None of the answers is correct.

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Definitions:

Placebos

Inert substances or treatments that have no therapeutic effect, used as a control in testing new drugs or given to a patient for the psychological benefit rather than for any physiological effect.

Phi Phenomenon

The phi phenomenon is a visual illusion in which stationary objects shown in rapid succession, such as a string of lights, appear to be moving.

Stroboscopic Motion

An optical illusion where continuous motion is represented by a series of short or instantaneous samples, as seen in motion pictures.

Autokinetic Illusion

A visual phenomenon where a stationary small point of light in a dark environment appears to move because of involuntary eye movements.