Use the Following Data to Find the Direct Labor Efficiency

question 222

Multiple Choice

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period.

• A)$6,125 unfavorable.
• B)$7,000 unfavorable.
• C)$7,000 favorable.
• D)$21,000 favorable.
• E)$6,125 favorable.

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Definitions:

Proportional Share

An allocation method where resources, rewards, or responsibilities are distributed among parties based on a predefined ratio or proportion.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Illusion of Invulnerability

A cognitive bias that leads individuals or groups to underestimate risks, believing themselves immune to negative outcomes.

Self-Censorship

Self-censorship occurs when individuals withhold their opinions, expressions, or information out of fear of social or official reprisal, judgment, or rejection.