Machine Builders Inc

question 40

Multiple Choice

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct labor flexible-budget variance for July, to the nearest dollar, was:

• A) $6,600 unfavorable.
• B) $7,200 unfavorable.
• C) $51,000 favorable.
• D) $58,200 favorable.
• E) $65,400 favorable.

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Definitions:

Split-half Reliability

This is a measure of consistency where a test is divided into two parts, and the scores from each half are compared to evaluate the test's reliability.

Test-retest Reliability

The reliability of a measurement determined by evaluating the same people on two separate occasions.

Interrater Reliability

A measure of the extent to which different observers or raters agree in their assessment decisions.

Reactivity

The phenomenon wherein subjects alter their performance or behavior due to the awareness that they are being observed.