The Standards for One Case of Peardrax Are During the Week Ended June 7, the Following Activity Took

question 14

Essay

The standards for one case of Peardrax are:
$$\begin{array} { | l | l | } \hline \text { Direct materials } & 8 \text { lbs. } \$ \$ 3.50 / \mathrm { Ib } . \\\hline \text { Direct labor } & 4 \text { hrs. } \$ 15.00 / \mathrm { hr } \\\hline \text { Variable overhead (based on machine hours) } & 2 \text { hrs. } \$ \$ 5.00 / \mathrm { hr } . \\\hline\end{array}$$ During the week ended June 7, the following activity took place:
• 5,740 machine hours were worked;
• 22,600 lbs.of raw material were purchased for inventory at a total cost of $83,620;
• 2,700 cases of finished product were produced;
• 21,330 lbs.of raw material were used;
• 10,650 labor hours were worked at an average rate of $15.20 per hour;
• $27,552 actual variable overhead costs were incurred.
Calculate each of the following variances:
(a.) Price variance for raw materials purchased.
(b.) Raw materials usage variance.
(c.) Direct labor rate variance.
(d.) Direct labor efficiency variance
(e.) Variable overhead spending variance.
(f) Variable overhead efficiency variance

Understand the concept of predictive validity and its significance in testing.

Grasp the concepts of test reliability and validity.

Recognize the impact of intelligence views and testing on individual perceptions and outcomes.

Discuss the historical and cultural views on intelligence.

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Definitions:

Inventory Valuation

The monetary amount associated with the goods held by a company to be sold or used in production.

Operation Costing

A hybrid costing system used in manufacturing, combining elements of both job-order and process costing.

Conversion Costs

Costs associated with converting raw materials into finished products, typically including labor and overhead expenses.

Abnormal Spoilage Costs

Abnormal spoilage costs are the costs associated with the waste or loss of materials, labor, or overheads that occur due to unforeseen circumstances or inefficiencies beyond standard production spoilage rates.