Eliezrie Corporation Makes a Product with the Following Standard Costs

question 164

Multiple Choice

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7, 400 units but the actual production was 7, 500 units.The company used 45, 580 kilos of the direct material and 2, 030 direct labor-hours to produce this output.During the month, the company purchased 48, 500 kilos of the direct material at a cost of $53, 350.The actual direct labor cost was $18, 473 and the actual variable overhead cost was $7, 714. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased.
The labor rate variance for January is:

• A)$2, 025 U
• B)$1, 827 U
• C)$1, 827 F
• D)$2, 025 F

Analyze the impact of changes in consumer expectations, incomes, and prices on market demand.

Understand the relationship between demand and supply in determining equilibrium price and quantity.

Distinguish between normal and inferior goods in response to income changes.

Recognize the effect of substitutes on market demand.

---

Definitions:

Population Mean

The average value of all the elements in a population, symbolically represented by the Greek letter mu (μ).

Simple Random Sample

A subset of individuals chosen from a larger set where each individual has an equal chance of being selected.

Sample Means

The average values obtained from multiple subsets of a population.

Unbiased Estimator

A statistical estimator that, on average, accurately reflects the parameter it estimates, meaning its expected value is equal to the true value of the parameter.