Extreme Builders Constructs Houses

question 3

Multiple Choice

Extreme Builders constructs houses.The standard labor rate is $25 per hour and the standard number of hours is 15,000 hours per home.During the year, it constructed 12 homes using 18,000 labor hours per home and a rate of $28 per hour ​
Calculate the Extreme Builders' labor rate variance.

• A) $540,000 U
• B) $540,000 F
• C) $648,000 U
• D) $648,000 F

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Definitions:

Moving Average

A statistical measure used to analyze data points by creating a series of averages of different subsets of the full data set.

Time Horizons

The length of time over which planning, investment, or projections are made, affecting decision-making processes.

Jury of Executive Opinion Model

The Jury of Executive Opinion Model is a forecasting method where a group of senior managers estimates future outcomes based on their experience and insights.

Expert Judgment Model

A decision-making process that relies on the expertise and experience of specialists in a particular field to make informed estimates and judgments.