A Company Uses the Following Standard Costs to Produce a Single

question 25

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 price variance for the month was:

• A)$6,000 unfavorable
• B)$1,800 favorable
• C)$1,000 favorable
• D)$5,800 unfavorable
• E)$1,800 unfavorable

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Definitions:

Object Location

The specific place or position at which an object resides or can be found.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed.

Conserve

To protect something, especially natural resources, from waste, loss, or damage.

Accommodate Schemas

The process by which individuals adjust their mental frameworks to include new experiences or information.