The Ticktock Corporation Produces Clocks

question 198

Multiple Choice

The Ticktock Corporation produces clocks. According to company standards, it should take 2 hours of direct labor to produce a clock. Ticktock's standard labor cost is $10 per hour. During June, Ticktock produced 5600 stopwatches and used 14,000 hours of direct labor at a total cost of $266,000. What is Ticktock's direct labor rate variance for June?

• A)$2800 favorable
• B)$2800 unfavorable
• C)$126,000 favorable
• D)$126,000 unfavorable

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Definitions:

Capital Flight

The sudden and large-scale withdrawal of capital or assets from a country due to economic or political instability.

"Brain Drain"

The emigration of highly trained or qualified people from a particular country.

Aggregate Demand

A schedule or curve that shows the total quantity of goods and services that would be demanded (purchased) at various price levels.

World's Output

The total production of all goods and services across all countries in the world.