It Takes 30 Minutes of Direct Labor Time to Make

question 65

Multiple Choice

It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 per hour. Variable overhead is applied at the rate of $5 per direct labor hour. Fixed overhead is budgeted at $56,500 per month.
-Refer to Figure 9-4. What is the budgeted overhead for November?

• A) $444,500
• B) $280,700
• C) $404,000
• D) $348,420
• E) $192,920

Analyze how efficiency wages influence labor demand, labor supply, and unemployment.

Evaluate the impact of technological advancements on monitoring workers and its effect on efficiency wages.

Distinguish between market-clearing wages and efficiency wages.

Identify the reasons why companies might prefer to pay efficiency wages.

---

Definitions:

Security Interest

A legal right or claim on assets granted to a creditor to secure the repayment of a loan, ensuring the asset's availability for seizure in case of default.

Lease

A contractual agreement where one party (the lessor) grants another party (the lessee) the right to use an asset for a specified period in exchange for payment.

Electronic Commerce

The buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.

Ucc Articles

UCC Articles refer to the sections of the Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.