The Following Information Is Presented for the Marathon Manufacturing Company

question 132

Multiple Choice

The following information is presented for the Marathon Manufacturing Company.
- Direct labor rate standard is $11.55.
- Direct labor efficiency standard is 2.5 hours per unit.
- Budgeted production is 1,200 units.
- Production required 2,910 direct labor hours at a cost of $33,174.
- Actual production is 1,150 units.
What is the direct labor price variance?

• A) $172.50 Favorable
• B) $180.00 Unfavorable
• C) $436.50 Favorable
• D) $435.50 Unfavorable

Interpret the impacts of changes in current asset and liability accounts on cash flows.

Recognize the significance and reporting of noncash investing and financing activities.

Calculate specific cash flow amounts, such as cash received from the sale of equipment or dividends received.

Understand how the cash flow statement is affected by changes in inventory, accounts receivable, and accounts payable.

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Definitions:

Likelihood

The probability of a set of observations given a particular statistical model.

Joint Probability

The likelihood of two or more events occurring simultaneously given the intersection of the events.

Intersection

The point or set of points where two or more mathematical sets or geometrical shapes meet or overlap.

Union of Events

A set operation that combines all the outcomes of two or more events, with no duplicate outcomes.