Dexter Surgical Tools Has Set the Following Perfection Direct Labour

question 19

Multiple Choice

Dexter Surgical Tools has set the following perfection direct labour standard: 0.5 hours at $20 per hour, for each unit of Tool #11. The company plans to produce 1200 units of Tool #11 in July; however, the actual production was 1000 units and only 900 units were actually sold. The actual labour cost for July was $22 per hour.
If Dexter Surgical Tools decides to use a practical standard instead of the perfection standard, the labour efficiency variance is likely to

• A) remain unchanged.
• B) increase.
• C) decrease.
• D) not enough information.

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Definitions:

Detoxification

The process of removing toxic substances or qualities, often used in the context of alcohol or drug misuse, as the body metabolizes and eliminates harmful substances.

Withdrawal

The process of discontinuing a drug or substance to which one has become dependent, often leading to a range of physical and psychological symptoms.

Melatonin

A hormone produced by the pineal gland that regulates sleep patterns by signaling the body to prepare for sleep as the environment darkens.

Hormone

Hormones are chemical messengers produced by glands in the endocrine system, traveling through the bloodstream to tissues or organs, affecting many different processes, including growth, metabolism, and mood.