Marv Company's Direct Labor Costs for Manufacturing Its Only Product

question 147

Multiple Choice

Marv Company's direct labor costs for manufacturing its only product were as follows for October: $\begin{array}{lrr}\text { Standard direct labor hours (DLHs) per unit of product } & 2.0 \\\text { Budgeted finished units for the period } & 6,000 \\\text { Actual number of finished units produced } & 5,000 \\\text { Standard wage rate per direct labor hour (SP) } & \$ 20.00 \\\text { Direct labor costs incurred } & \$ 207,000 \\\text { Actual wage rate per direct labor hour (AP) } & \$ 18.00\end{array}$ The total direct labor variance for October, rounded to the nearest dollar, was:

• A) $7,000 unfavorable.
• B) $9,000 favorable.
• C) $9,000 unfavorable.
• D) $32,000 favorable.
• E) $54,000 unfavorable.

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Definitions:

Emotional Intelligence

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, and overcome challenges.

Cognitive Judgments

The mental process of evaluating, making decisions, or forming opinions based on thought and reasoning.

Group Consensus

The collective agreement or decision made by all members of a group, often achieved through discussion and compromise.

Heinz Dilemma

A moral dilemma experiment designed by Lawrence Kohlberg to assess the moral reasoning stage of an individual, involving a man stealing medicine to save his wife's life.