Information Concerning Johnston Co

question 32

Multiple Choice

Information concerning Johnston Co.'s direct materials costs is as follows:The direct materials usage variance for the period, rounded to two decimal places, is:

• A) $307.50 unfavorable.
• B) $307.50 favorable.
• C) $322.50 unfavorable.
• D) $322.50 favorable.
• E) $532.50 favorable.

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Definitions:

Availability Heuristic

A cognitive short-cut in which the frequency or likelihood of an event is based on how quickly instances or associations come to mind.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by its similarity to a prototype, potentially leading to errors in judgment.

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate personal characteristics when explaining others' behaviors.