Reference: 21_05 A Job Was Budgeted to Require Three Hours of Labor

question 33

Multiple Choice

Reference: 21_05
A job was budgeted to require three hours of labor per unit at $8 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.
-What is the total labor cost variance?

• A) $22,000 unfavorable
• B) $16,000 unfavorable
• C) $6,000 unfavorable
• D) $16,000 favorable
• E) $22,000 favorable

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Definitions:

Correlations

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

Stock-Index Portfolios

Investment portfolios that aim to replicate the performance of a specific stock index, allowing investors to gain broad market exposure.

GDP Per Capita

An economic measure that calculates a country's economic output per person by dividing the GDP by the population.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage rate based on the investment's cost, its current market value, or its face value.