Figliola Corporation Manufactures and Sells a Single Product

question 203

Multiple Choice

Figliola Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,680 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:
Actual results for October:
-The activity variance for direct labor in October would be closest to:

• A)$110 U
• B)$880 U
• C)$880 F
• D)$110 F

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Definitions:

Overjustification Effect

A psychological phenomenon where external rewards can reduce intrinsic motivation for a task, due to the individual attributing their behavior to the reward rather than their own interest.

Extrinsic Rewards

Benefits given by an external source, such as money, grades, or praise, which are used to motivate certain behaviors.

Intrinsic Enjoy

Finding inherent satisfaction and pleasure in an activity, regardless of external rewards or outcomes.

Self-Handicapping

Self-handicapping is a strategy where individuals create obstacles for themselves as an excuse for potential failure, protecting their self-esteem.