The Standards for Direct Labor for a Product Are 2

question 6

Multiple Choice

The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F The actual number of hours worked during the past period was:

• A)23,500
• B)22,500
• C)20,500
• D)21,500

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Definitions:

Purely Competitive Industry

An industry structure characterized by many small firms producing identical products with no single firm able to influence market prices.

Nonprice Competition

Strategies companies use to attract customers that do not involve changing the price of goods or services, such as advertising and product differentiation.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount consumers are willing to buy at various prices.

Elasticity Coefficient

A measure that indicates how much the quantity demanded of a good or service changes in response to a change in price.