The Standards for One Carton of Flavor Rite Are During the Week Ended May 17, the Following Activity Took

question 55

Essay

The standards for one carton of Flavor Rite are:
$$\begin{array} { | l | l | } \hline\text { Direct materials } & 3.2 \mathrm { lbs } @ \$ 6.00 / \mathrm { hb } \\\hline \text { Direct labor } & 2.4 \mathrm { hrs } @ \$ 10.00 \mathrm { hr } . \\\hline\end{array}$$

During the week ended May 17, the following activity took place:
• 4,800 lbs.of raw material were purchased for inventory at a cost of $5.60 per pound;
• 1,200 cartons of finished product were produced;
• 4,020 lbs.of raw material were used;
• 3,110 labor hours were worked at a total cost of $26,435.
Calculate each of the following variarices:
(a) Raw materials purchase price variance.
(b.) Raw materials usage variance.
(c) Direct labor rate variance.
(d.) Direct labor efficiency variance.
(e.) Explain the factors that most likely caused the variances computed above.

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Definitions:

Psychoanalysis

A therapeutic approach founded by Sigmund Freud that aims to explore unconscious desires and conflicts as they manifest in behavior and mental disorders.

TAT

Thematic Apperception Test, a projective psychological test used to reveal a person's social drives or needs by their interpretation of a series of pictures of ambiguous scenes.

MMPI-2

The Minnesota Multiphasic Personality Inventory-2, a widely used standardized psychometric test of adult personality and psychopathology.

Projective Tests

Psychological assessments where individuals respond to ambiguous stimuli, revealing hidden emotions, desires, and internal conflicts.