The Davidson Corporation Produces Clocks

question 44

Multiple Choice

The Davidson Corporation produces clocks.According to company standards,it should take 2 hours of direct labor to produce a clock.Davidson's standard labor cost is $19 per hour.During June,Thomas produced 6,200 stopwatches and used 13,500 hours of direct labor at a total cost of $260,000.What is Thomas' direct labor rate variance for June?

• A)$1,607 favorable
• B)$1,607 unfavorable
• C)$3,500 favorable
• D)$3,500 unfavorable

Grasp the concept of economies and diseconomies of scale and their effects on long-run average total costs.

Explain the impact of changes in variable and fixed costs on a firm's cost curves.

Interpret graphical representations of cost concepts and scales of production.

Distinguish between short-run and long-run production periods and associated cost behaviors.

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Definitions:

Sensory Input

The reception of stimuli by sensory receptors, leading to sensory experiences.

Texture Gradient

A depth cue in which the density of texture increases with distance, contributing to the perception of depth.

Linear Perspective

A depth cue that allows us to perceive the depth and distance of objects by the way parallel lines seem to converge at a point in the distance.

Relative Size

A perceptual cue which allows the determination of distance based on the knowledge of the size of objects.