Tout Corporation Makes a Product That Has the Following Direct

question 113

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 rate variance for October is:

• A)$122 U
• B)$130 F
• C)$122 F
• D)$130 U

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Definitions:

Trial

A method used in marketing to allow potential customers to try a product or service for a limited time to assess its value or effectiveness.

Promotion-to-Sales Ratio

A metric analyzing the effectiveness of promotional activities by comparing the cost of promotion to the generated sales revenue.

Competitive Parity

A marketing strategy where a company matches the benefits or price points of its competitors to maintain or achieve competitive advantage.

Percentage of Sales

A financial metric that shows how much of a company's sales are generated over a period, often used to allocate marketing budget.