Allan Company Manufactures Overalls -Refer to the Figure

question 154

Multiple Choice

Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows:
Allan required 600,000 m at $1.95 per metre to make the 125,000 overalls.
$\begin{array}{lll}\text {Direct materials ( \( 5 \mathrm{~m} \) of denim \( (012 \) per metre) }&\$10\\\text { Direct labour (3 hours \( @ \$ 6 \) per hour) }&18\\\end{array}$

-Refer to the Figure.What is Allan's labour rate variance?

• A)$90,625 U
• B)$90,625 F
• C)$93,750 U
• D)$93,750 F

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Definitions:

Ego Integrity

is a term from Erikson's psychosocial development theory referring to the acceptance of one's life as meaningful during the late stages of life.

Cognitive Flexibility

The mental ability to switch between thinking about two different concepts, or to think about multiple concepts simultaneously.

Fluid Intelligence

Mental flexibility as shown in learning rapidly to solve new kinds of problems.

Role Diffusion

A situation where an individual lacks a clear sense of identity or role in society, often explored in Erikson's stages of psychosocial development.