Ponte Company Produced 2,500 Widgets During December Using 4,000 Units

question 156

Essay

Ponte Company produced 2,500 widgets during December using 4,000 units of materials at a cost of $5.00 each.It also used 5,000 direct labour hours at a rate of $7.00 per hour.Its direct materials standard is 2 units per widget.Its direct labour standard is 2.5 hours per widget.
Its materials price variance was a favourable $8,000,and its labour rate variance was an unfavourable $1,000.

---

Definitions:

Simple Tasks

Tasks that are easy to understand and execute, requiring minimal effort or complexity.

Challenging Goals

Goals that are difficult to achieve but not impossible, designed to motivate individuals to stretch their abilities and achieve higher performance.

Task Performance

Task performance refers to the execution and completion of job-related activities, often evaluated against predefined standards.

Complex Tasks

Tasks that involve multiple steps, components, or dimensions and usually require higher-order cognitive processes to solve.