Use the Information Below to Answer the Following Question(s)

question 105

Multiple Choice

Use the information below to answer the following question(s) .Tractor Corporation produces toy tractors.The company uses the following direct cost categories:
Actual performance for the company is shown below:
Actual output: 5,000 units
Direct Materials:
Direct Manufacturing Labour:
Direct Marketing Labour:

-What is the rate variance of the direct manufacturing labour, and the direct marketing labour, respectively?

• A)$4,750 favourable; $12,500 favourable
• B)$8,000 favourable; $10,000 favourable
• C)$3,500 unfavourable; $6,750 unfavourable
• D)3,500 favourable; $6,750 favourable
• E)$4,750 unfavourable; $12,500 unfavourable

---

Definitions:

Taylorism

A management theory developed by Frederick W. Taylor that emphasizes scientific studies of tasks and time management to improve work efficiency.

Outsourcing

The process where a company hires another company or individual to perform tasks, handle operations or provide services that are either difficult to manage or outside of the hiring company's expertise.

Efficient Operations

The ability of an organization to achieve its objectives with minimum wastage of resources and optimum productivity.

Individual Growth

The personal development and enhancement of skills, knowledge, and abilities over time.