Cuyahoga Corporation Reports the Following Standards for Direct Labor for the Year

question 46

Essay

Cuyahoga Corporation reports the following standards for direct labor for the year:
Standard cost per hour $17.75
Standard quantity per finished good 2.0 hours
During the year, 35,000 finished goods were produced. The direct labor efficiency variance was $2,650 favorable. The direct labor flexible budget variance was $550 favorable.
Calculate the following items regarding direct labor for Cuyahoga Corporation for the year:
A. Direct labor rate variance
B. Standard hours of direct labor for actual production
C. Actual hours of direct labor incurred for actual production

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Definitions:

P-Value

The probability of observing a test statistic at least as extreme as the one observed, under the assumption that the null hypothesis is true.

Level of Significance

The probability of rejecting the null hypothesis when it is actually true, used as a threshold in hypothesis testing.

Test Statistic

A calculated value from a data sample used to test a hypothesis against some criteria.

P-Value

The probability of observing a statistical summary at least as extreme as the one observed if the null hypothesis is true.