Answer the Following Questions Using the Information Below:
Berman's Camera

question 70

Multiple Choice

Answer the following questions using the information below:
Berman's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.
$\begin{array}{lrrr} &\text { Flexible }&\text { Variances }\\& \text { Budget } & \text { Price } & \text { Efficiency } \\\text { Material A } & \$ 40,000 & \$ 1,000 \mathrm{~F} & \$ 3,000 \mathrm{U} \\\text { Material B } & 60,000 & 500 \mathrm{U} & 1,500 \mathrm{~F} \\\text { Direct manufacturing labor } & 80,000 & 500 \mathrm{U} & 2,500 \mathrm{~F}\end{array}$
-The most likely explanation of the above direct manufacturing labor variances is that ________.

• A) the average wage rate paid to employees was less than expected
• B) employees did not work as efficiently as expected to accomplish the job
• C) the company may have assigned more experienced employees this month than originally planned
• D) management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency

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Definitions:

Personality

A combination of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.

Genetic

Relating to genes or heredity and the study of how traits are passed from parents to offspring.

Trait-Situation Interaction

A concept in psychology that suggests individuals' behavior is determined by the interaction of their personality traits and environmental situations.

Modern Psychoanalytic Theory

An evolution of Freudian psychoanalysis that may incorporate social, cultural, and interpersonal dynamics in understanding the psyche.