Ravena Labs $\bullet$ 3,750 Units of Compound Were Produced During the Month

question 116

Multiple Choice

Ravena Labs., Inc. makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce
Direct labor: 1.4 hours at $12.50 per hour
Variable manufacturing overhead: 1.4 hours at 3.50 per hour
Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October:
$\bullet$ 3,750 units of compound were produced during the month.
$\bullet$ There was no beginning direct materials inventory.
$\bullet$ Direct materials purchased: 12,000 ounces for $225,000.
$\bullet$ The ending direct materials inventory was 2,000 ounces.
$\bullet$ Direct labor-hours worked: 5,600 hours at a cost of $67,200.
$\bullet$ Variable manufacturing overhead costs incurred amounted to $18,200.
$\bullet$ Variable manufacturing overhead applied to products: $18,375.
The materials price variance for October is:

• A) $15,000 Unfavorable
• B) $15,000 Favorable
• C) $25,000 Unfavorable
• D) $25,000 Favorable

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Definitions:

INAH3

Refers to the third interstitial nucleus of the anterior hypothalamus, a brain structure believed to play a role in sexual behavior and sexual orientation.

Anterior Hypothalamus

A region of the hypothalamus brain involved in regulating functions such as body temperature, thirst, and sexual behavior.

Simon LeVay

A neuroscientist known for his research into the biology of sexual orientation, particularly for a 1991 study on brain structure differences between homosexual and heterosexual men.

Firm Deadlines

Specific, fixed dates or times by which tasks or objectives must be completed, allowing for little to no flexibility.