Using the Labor Time Standard of 0 A) $3,960 (F)
B) $3,960 (U)
C) $4,500 (U)
D)

question 121

Multiple Choice

Using the labor time standard of 0.5 labor hour per unit and a labor cost standard of $10 per labor hour for a 10 pound bag of chocolate and the following actual cost and usage data,compute the direct labor efficiency variance. $$\begin{array} { l l } \text { Direct labar hours used } & 4,950 \text { hours } \\\text { Total cost of direct labor } & \$ 53,460 \\\text { Number of good units produced } & 9,000 \text { units }\end{array}$$

• A) $3,960 (F)
• B) $3,960 (U)
• C) $4,500 (U)
• D) $4,500 (F)

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Definitions:

Acceptance

The action of consenting to receive or undertake something offered.

Offer

A proposal presented by one party to another as the basis for a contract, requiring acceptance to become legally binding.

Mirror Image Rule

A principle in contract law stating that an offer must be accepted exactly with no modifications for a valid contract to be formed.

Offeror

The party making the offer.