Joe Malay Received the Following Report on the Division's Operation

question 28

Multiple Choice

Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable; Direct labor efficiency variance = $70,000 (?) . The standard calls for 3.0 direct labor hours per unit of output at $28.00 per labor hour (SP) . The standard direct labor hours allowed for the units manufactured (SQ) is 20 percent more than the total direct labor hours worked (AQ) in August.

What was the average direct labor hourly rate (AP) the Division paid in August, to two decimal places?

• A) $24.00.
• B) $26.00.
• C) $28.00.
• D) $30.00.
• E) $31.25.

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Definitions:

Stages of Creativity

A conceptual framework outlining the process of creative thinking, typically including preparation, incubation, illumination, and verification phases.

Lateral Thinking

A problem-solving approach that encourages looking at problems from new and diverse perspectives, rather than following conventional step-by-step logic.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Engineering Group

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