Carlton Corporation Carlton Corporation Produces and Sells Faux-Leather Handbags. in the Current

question 16

Multiple Choice

Carlton Corporation
Carlton Corporation produces and sells faux-leather handbags. In the current year, the company budgeted for the production and sale of 1000 handbags; however, 900 handbags were actually produced and sold. Each bag has a standard requiring 2 metres of material at a cost of $4.00 per metre and 1 hour of assembly time at a cost of $9.50 per hour. Actual costs for the production of 900 bags were $7215 for materials (1850 metres purchased and used @ $3.90 per metre) and $10 125 for labour (1125 hours @ $9.00 per hour) .
-Carlton's direct labour rate variance is:

• A) $562.50 F
• B) $562.50 U
• C) $450.00 F
• D) $450.00 U

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Definitions:

Third-Party Beneficiary

An individual or entity that is not directly involved in a contract but stands to benefit from it as specified by the contracting parties.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights with respect to each other.

Listed Party

An individual or entity that appears on a list due to certain criteria, often used regarding sanctions, where listed parties are restricted from certain transactions and relationships.

Enforceability

The ability of a legal document or agreement to be upheld or compelled by law in a court of justice.