The Following Data Relate to Direct Labor Costs for the Current

question 160

Multiple Choice

The following data relate to direct labor costs for the current period of Executive Inc.: $\begin{array}{lrr} \text {6,000 hours at \( \$12.00 \) } & \text { Standard costs } \\ \text {7,500 hours at \( \$ 11.60 \) } & \text { Actual costs } \\\end{array}$

Refer to the information provided for Executive Inc. What is the direct labor time variance?

• A) $17,400 favorable
• B) $17,400 unfavorable
• C) $18,000 favorable
• D) $18,000 unfavorable

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Definitions:

Productivity

The measure of efficiency in which goods or services are created, often evaluated as the output per unit of input.

Fulfillment

A feeling of satisfaction or happiness as a result of fully developing one's abilities or character.

Deficit Principle

A principle that suggests that once a relatively satisfied need is no longer met, it will re-emerge and become the dominant motivator of behavior.

Motivator

Anything that stimulates interest or action, especially in terms of encouraging people to achieve goals or improve performance.