High Fliers Company Produces Model Airplanes

question 111

Multiple Choice

High Fliers Company produces model airplanes. During the month of November, it produced 2,000 planes. The actual labor hours were 7 hours per plane. Its standard labor hours are 10 hours per plane. The standard labor rate is $11 per hour. At the end of November, High Fliers found that it had a favorable labor rate variance of $10,500.
-Refer to Figure 10-4. What was High Fliers' total labor variance?

• A) $61,500 F
• B) $76,500 F
• C) $76,500 U
• D) $61,500 U

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Definitions:

Perceptual Set

A mental predisposition to perceive things in a certain way, influenced by expectations, culture, emotions, and other psychological factors.

Subliminal Stimulation

The exposure to stimuli below the threshold of conscious awareness, purportedly influencing thoughts, feelings, or behaviors without overt perception.

Bottom-up Processing

A way of processing information in which the brain forms perceptions by starting with individual pieces of sensory data and combining them to create a cohesive image or understanding.

Context Effects

The influence of environmental factors on one's perception or understanding of a stimulus.