Kartman Corporation Makes a Product with the Following Standard Costs

question 247

Multiple Choice

Kartman Corporation makes a product with the following standard costs: In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for June is:

• A) $4,200 F
• B) $4,200 U
• C) $4,020 U
• D) $4,020 F

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Definitions:

Third Places

Public places that serve as informal gathering spots, distinct from one's home (first place) and work (second place), important for community building.

Public Places

Areas that are open and accessible to all members of a community, including parks, streets, and public buildings.

Informal

Lacking official procedures or rules; casual or unofficial in nature.

Contact Cultures

Societies or communities that prefer close physical proximity and touch as part of social interactions.