Use the Following Data to Find the Direct Labor Efficiency

question 69

Multiple Choice

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $7/hr.) $ 28 per unit Actual hours worked 12,250
Actual rate per hour $ 7.50

• A) $12,250 favorable.
• B) $6,125 unfavorable.
• C) $6,125 favorable.
• D) $7,000 unfavorable.
• E) $7,000 favorable.

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Definitions:

Correlation

A statistical measure that describes the extent to which two variables change together, indicating the strength and direction of their relationship.

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Market Risk

The risk of losses in investments due to factors that affect the entire market or economy.

CAPM (Capital Asset Pricing Model)

A financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.