Fletcher Company Collected the Following Data Regarding Production of One

question 204

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor rate variance. $\begin{array}{lrl}\text { Direct labor standard (2hrs. @, } \$ 12.75 / \mathrm{hr} .) & \$ 5.50&\text {per finished} \\&&\text {unit}\\\text { Actual direct labor hours } & 81,500 &\text {hrs.} \\\text { Actual finished units produced } & 40,000&\text {units}\\\text { Actual cost of direct labor } & \$ 1,100,250\end{array}$

• A) $80,250 unfavorable.
• B) $80,250 favorable.
• C) $61,125 favorable.
• D) $61,125 unfavorable.
• E) $19,125 unfavorable.

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Definitions:

Repression

A psychological defense mechanism where distressing thoughts and memories are unconsciously blocked from conscious awareness.

Psychoanalytic Perspective

A framework in psychology which posits that human behavior is influenced by unconscious motives and conflicts.

Fixated

Describes a psychological state or condition where an individual becomes obsessively focused on an object, subject, or activity.

Oral Stage

A phase in Freud's psychosexual development theory occurring from birth to about 18 months, where an infant's pleasure centers on the mouth.