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

---

Definitions:

Nonverbal Abilities

cognitive skills that do not require the use of language, including understanding and interpreting gestures, facial expressions, and other nonverbal cues.

Culture-fair

Tests or assessments designed to be free of cultural bias, aiming to measure intelligence or other abilities in a manner equitable to all cultural groups.

Rotating Objects

The mental or physical action of spinning objects around a central axis, often studied in cognitive psychology to understand spatial perception and motor skills.

Aptitude Test

A test that predicts future performance in a particular setting or on a specific task.