At Worthe Corporation, Indirect Labor Is a Variable Cost That

question 115

Multiple Choice

At Worthe Corporation, indirect labor is a variable cost that varies with direct labor-hours. Last month's performance report showed that actual indirect labor cost totaled $7,920 for the month and that the associated spending variance was $240 F. If 10,200 direct labor-hours were actually worked last month, then the flexible budget cost formula for indirect labor must be (per direct labor-hour) closest to:

• A)$0.95
• B)$0.90
• C)$0.80
• D)$0.85

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Definitions:

Overshadowing

In a compound conditioning situation, the prevention of conditioning to one stimulus due to the presence of a more salient or intense stimulus.

Salient Cue

A salient cue is a piece of information or stimulus that stands out from its surroundings, grabbing attention and influencing behavior or perceptions due to its prominence or importance.

Associative Strength

The strength of a learned association between a stimulus and a response, influencing how likely the response is to occur following the stimulus.

Associative Strength

The measure of how strongly two ideas or stimuli are connected in the mind, impacting the likelihood of recalling or recognizing them together.