Bread Company Has Developed the Following Standards for One of Its

question 33

Multiple Choice

Bread Company has developed the following standards for one of its products. The company records materials price variances at the time of purchase.
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The direct labor rate variance is

• A) $8,000 unfavorable.
• B) $8,000 favorable.
• C) $12,000 unfavorable.
• D) $12,000 favorable.

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Definitions:

Inflation Rate

A percentage-based uplift in the cost of goods and services within an economy over a designated timeframe.

Zero-inflation

A situation where the price level of goods and services remains constant over time, indicating an absence of inflation in the economy.

Phillips Curve

An economic concept that describes an inverse relationship between rates of unemployment and corresponding rates of inflation, suggesting that higher inflation is associated with lower unemployment and vice versa.

1970s

A decade marked by significant events including economic turmoil, the oil crisis, social movements, and the Cold War's continuing tension.