Ivanovich Company Produces 2,500 Units

question 36

Multiple Choice

Ivanovich Company produces 2,500 units.Each unit was expected to require 2 labor hours at a cost of $10 per hour.Total labor cost was $52,250 for 4,750 hours worked.Direct labor is measured in labor hours.What is the flexible budget variance for direct labor?

• A) $2,250 Favorable
• B) $2,250 Unfavorable
• C) $7,500 Favorable
• D) $7,500 Unfavorable

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Definitions:

Egocentrism

The inability to differentiate between one's own perspective and the perspective of others.

Intuitionist Perspective

A philosophical viewpoint that emphasizes intuition as a primary or foundational source of knowledge or ethical decision-making.

Psychosocial Perspective

A viewpoint that considers individual psychological development within the context of social relationships and societal structures.

Cognitive Development

The process by which a person perceives, thinks, and gains understanding of their world through the interaction and influence of genetic and learned factors.