The Following Information Describes a Company's Usage of Direct Labor

question 110

Multiple Choice

The following information describes a company's usage of direct labor in a recent period:
$\begin{array}{|l|r|}\hline \text { Actual direct labor hours used } & 44,000 \\\hline \text { Actual rate per hour } & \$ 20 \\\hline\text { Standard rate per hour } & \$ 18 \\\hline \text { Standard hours for units produced } & 42,000 \\\hline\end{array}$
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How much is the direct labor price variance?

• A) $84,000 favorable
• B) $88,000 favorable
• C) $88,000 unfavorable
• D) $84,000 unfavorable

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Definitions:

Learned Helplessness

A condition in which individuals believe they have no control over the outcomes of situations, often resulting from repeated failures or a sense of powerlessness.

Cognitive Interpretation

The process by which individuals perceive, comprehend, and make sense of the world around them, particularly how they interpret events and stimuli.

Aversive Events

Unpleasant or undesirable occurrences that individuals seek to avoid or minimize, often motivating behavior changes.

Behavioral Disengagement

A coping mechanism involving withdrawal from or reduction of effort in attempting to achieve goals when they seem unattainable.