Tout Corporation Makes a Product That Has the Following Direct

question 57

Multiple Choice

Tout Corporation makes a product that has the following direct labor standards:

The company budgeted for production of 6,400 units in October, but actual production was 6,500 units. The company used 610 direct labor-hours to produce this output. The actual direct labor rate was $21.80 per hour.

-The labor efficiency variance for October is:

• A)$872 F
• B)$872 U
• C)$880 U
• D)$880 F

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Definitions:

Placebo Effect

A phenomenon where an improvement in health or wellbeing is observed after receiving a treatment that has no therapeutic value, due to the individual's belief in its efficacy.

Illusory Correlation

refers to the cognitive bias where a relationship between two variables is perceived to exist when no such relationship actually exists.

Double-Blind Procedure

A experimental setup in which neither the participants nor the experimenters know who is receiving a particular treatment, preventing bias in the results.

Illusory Correlation

The cognitive bias of perceiving a relationship between two variables even when no such relationship exists.