Carlton Corporation Carlton Corporation Produces and Sells Faux-Leather Handbags

question 73

Multiple Choice

Carlton Corporation Carlton Corporation produces and sells faux-leather handbags. In the current year, the company budgeted for the production and sale of 1,000 handbags; however, 900 handbags were actually produced and sold. Each bag has a standard requiring two yards of material at a cost of $4.00 per yard and 1 hour of assembly time at a cost of $9.50 per hour. Actual costs for the production of 900 bags were $7,215 for materials (1,850 yards purchased and used @ $3.90 per yard) and $10,125 for labor (1,125 hours @ $9.00 per hour) .
Refer to the Carlton Corporation information above. Carlton's direct materials price variance is:

• A) $195 U.
• B) $ 15 U.
• C) $185 F.
• D) $180 F.

Analyze the effects of swing shifts on short-run marginal cost and pricing strategies.

Comprehend the process of yield rate improvement and its impact on cost schedules in production.

Calculate the number of batches required to meet specific production targets given an increasing yield rate.

Evaluate the effects of production scale-up and labor cost changes on overall cost and pricing in the manufacturing sector.

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Definitions:

PYY

A hormone concerned with hunger and the lack of hunger, part of the neuroendocrine system that influences appetite and food intake.

Serotonin

A neurotransmitter in the brain that affects mood, emotion, and sleep.

High Carbohydrates

Diets or food items that have a large proportion of carbohydrates, which are essential energy sources but, when consumed in excess, can contribute to weight gain and other health issues.

Binge-Eating Disorders

A serious eating disorder marked by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort.