Accurate Tax Returns Budgets 2 Direct Labor Hours for Every

question 156

Multiple Choice

Accurate Tax Returns budgets 2 direct labor hours for every tax return that it prepares, at a standard cost of $32 an hour. During the most recent year, 500 returns were completed with the labor cost totaling $18,000. The actual labor cost was $36 per hour during that period. The actual number of labor hours was 1,000. What was the direct labor cost variance?

• A)$2,000 F
• B)$32,000 U
• C)$4,000 U
• D)$32,000 F

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Definitions:

Observations

Data points or individual pieces of data collected through measurement, study, or research.

Random Sample

A group of people selected from a broader population, where every person has the same probability of being chosen.

Sign Test

A nonparametric test used to determine if there is a median difference between two paired samples.

Matched Pairs

An experimental design technique where each treatment is given to two subjects that are as closely matched as possible, or to the same subject under different conditions.