Chhom Corporation Makes a Product Whose Direct Labor Standards Are

question 160

Multiple Choice

Chhom Corporation makes a product whose direct labor standards are 0.8 hours per unit and $25 per hour. In November the company produced 7,200 units using 5,260 direct labor-hours. The actual direct labor cost was $110,460.The labor efficiency variance for November is:

• A) $33,540 Favorable
• B) $12,500 Favorable
• C) $12,500 Unfavorable
• D) $33,540 Unfavorable

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that prioritizes human needs from the most basic (physiological) to higher-level needs (self-actualization).

Social Diffusion

The process by which attitudes, innovations, or behaviors spread within a population or social network.

Reference Group

Any group that individuals use as a standard for evaluating their own behavior, values, or attitudes, influencing decision-making and perceptions.

Attributes

Characteristics or features of a product, person, or thing, often considered in evaluation or decision-making.