The Alpha Company Produces Toys for National Distribution

question 140

Multiple Choice

The Alpha Company produces toys for national distribution. Standards for a particular toy are:
Materials: 12 ounces per unit at 56¢ per ounce.
Labor: 2 hours per unit at $2.75 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows:
Materials: 14,000 ounces were purchased and used at a total cost of $7,140.
Labor: 2,500 hours worked at a total cost of $8,000.
-The labor rate variance is:

• A) $2,500 F
• B) $1,125 F
• C) $1,125 U
• D) $2,500 U

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Definitions:

Type A Personality

A personality characterized by high levels of competitiveness, self-imposed stress, impatience, and aggression.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which they're learned.

Personality

The mix of feelings, attitudes, and behaviors that make up a person's response habits.

Type B Personality

Person who is relaxed and laid back, less driven and competitive than Type A, and slow to anger.