Use the Following Data to Find the Direct Labor Rate

question 148

Multiple Choice

Use the following data to find the direct labor rate variance.
$\begin{array}{ll}\text { Direct labor standard (4 hrs. }@ & \$ 28 \text { per unit } \\\$ 7 / \text { hr.) } & \\\text { Actual hours worked per unit } & 3.5 \text { hours } \\\text { Actual units produced } & 3,500 \text { units } \\\text { Actual rate per hour } & \$ 7.50\end{array}$

• A) $6,125 unfavorable.
• B) $7,000 unfavorable.
• C) $7,000 favorable.
• D) $12,250 favorable.
• E) $6,125 favorable.

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Definitions:

Mirror-image Perceptions

The phenomenon where opposing parties see themselves in the best light and the opposing party negatively, often exacerbating conflicts.

Reciprocity Norm

A social rule that suggests people should return the favors or benefits that they have received from others.

Social Prescriptions

Expectations and norms dictated by society regarding how individuals should behave.

Social Contagion

The spread of ideas, attitudes, or behaviors through a group or society, mirroring the infectious process of a disease.