A Company Uses the Following Standard Costs to Produce a Single

question 108

Multiple Choice

A company uses the following standard costs to produce a single unit of output. During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct materials quantity variance for the month was:

• A)$1,800 favorable
• B)$5,800 unfavorable
• C)$5,800 favorable
• D)$1,800 unfavorable
• E)$1,000 favorable

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Definitions:

Fourteenth Amendment

An amendment to the United States Constitution, ratified in 1868, that grants citizenship to all persons born or naturalized in the U.S., including formerly enslaved people, and provides all citizens with equal protection under the laws.

Crop-Lien System

A credit system used in the Southern United States after the Civil War, where farmers borrowed against the value of anticipated crops, often leading to debt and sharecropping.

Late Nineteenth-Century

A period typically considered to span from the end of the Civil War in 1865 to the beginning of the 20th Century, marked by industrialization, urbanization, and significant social and technological changes.