Lucky Company's Direct Labor Information for the Month of February

question 3

Multiple Choice

Lucky Company's direct labor information for the month of February is as follows: $\begin{array}{lr}\text { Actual direct labor hours worked (AQ) } & 61,500 \\\text { Standard direct labor hours allowed (SQ) } & 63,000 \\\text { Total payroll for direct labor } & \$ 774,900 \\\text { Direct labor efficiency variance } & \$ 18,000\end{array}$ The total standard direct labor cost allowed for February, rounded to the nearest dollar, was:

• A) $738,000.
• B) $747,000.
• C) $756,000.
• D) $765,000.
• E) $774,900.

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Definitions:

Mean Salary

The average wage or salary calculated by summing all salaries and dividing by the number of salaries.

Normal Distribution

This refers to a probability distribution where symmetry around the mean indicates higher frequency of data points near the mean than those far from it.

Average Annual Revenue

This refers to the amount of money a company earns in a year, on average, from its operations.

Standard Deviation

A metric indicating the extent to which data points diverge from the mean, showing the distribution's spread.