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

question 7

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 direct labor hours per unit of output at $28 per labor hour.The standard direct labor hours for the units manufactured is 20 percent more than the total direct labor hours actually worked in August.What were the total standard hours allowed for the units manufactured in August?

• A)10,000.
• B)12,000.
• C)12,500.
• D)15,000.
• E)15,625.

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Definitions:

Utility Maximization

The process by which individuals allocate their resources to obtain the highest possible level of satisfaction or utility, subject to their budget constraint.

Marginal Utility

The change in total utility obtained by consuming one additional unit of a good or service.

Consumption Bundle

A set of goods or services that a consumer chooses to purchase at a given time.

Good 1

Typically a term used in economics to represent a specific commodity or product in theoretical discussions.