Crichton Company the Following Information Is for Crichton Company's July

question 130

Multiple Choice

Crichton Company The following information is for Crichton Company's July production:
$\begin{array}{ll}\textbf { Standard: }\\\text { Material } & 3.0 \text { feet per unit } @ \$ 4.20 \text { per foot } \\\text { Labor } & 2.5 \text { hours per unit } @ \$ 7.50 \text { per hour }\end{array}$

$\begin{array}{ll}\textbf { Actual: }\\\text { Production } & 2,750 \text { units produced during the month } \\\text { Material } & 8,700 \text { feet used; } 9,000 \text { feet purchased @ } \$ 4.50 \text { per foot } \\\text { Labor } & 7,000 \text { direct labor hours } \$ 7.90 \text { per hour }\end{array}$ (Round all answers to the nearest dollar.)
Refer to Crichton Company.What is the material quantity variance?

• A)$3,105 F
• B)$1,050 F
• C)$3,105 U
• D)$1,890 U

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Definitions:

Job-order Costing

An accounting method that assigns costs to specific jobs or batches, useful for customized orders or distinct products.

Direct Labor

The wages and other compensation for employees who are directly involved in the production of goods or services.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a product’s production, such as indirect materials and labor.

Raw Materials

Fundamental materials in their raw, altered, or partially processed forms utilized as input for manufacturing.