The Following Information Describes Production Activities of the Midtown Corp

question 162

Essay

The following information describes production activities of the Midtown Corp.:
30,000 units were completed during the year
Budgeted standards for each unit produced:
1/2 lb. of raw material at $4.15 per lb.
10 minutes of direct labor at $12.50 per hour
Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

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Definitions:

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment.

Basic Drives

Fundamental biological impulses that drive behavior, such as hunger, thirst, and the need for sleep.

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctive impulses and demands for immediate satisfaction of primal needs.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.