The Costmore Company Uses Standard Costing and Has Established the Following

question 23

Multiple Choice

The Costmore Company uses standard costing and has established the following standards for direct materials and direct labor for each unit it makes: During July,the company made 4,000 units of product and used 13,000 gallons.The actual price paid for materials was $5.20 per gallon. Direct Labor used was 3,600 hours and workers were paid $11.75 per hour.
An analysis would indicate

• A) a $5,000 unfavorable materials quantity variance.
• B) a $7,600 favorable materials quantity variance.
• C) a $2,600 favorable materials quantity variance.
• D) a $7,600 unfavorable materials quantity variance.

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Definitions:

Industry Life Cycle

A concept describing the stages of growth and development that a sector or industry goes through, from emergence to decline.

Stalwarts

Well-established companies known for their durability, stable earnings, and regular dividend payments.

Slow-growers

Companies or stocks that exhibit lower-than-average growth in terms of revenue or earnings, often offering stable dividends.

Industry Life Cycle

The Industry Life Cycle describes the stages of growth and development that an industry undergoes, beginning with its introduction, growth, maturity, and eventual decline.