Tharaldson Corporation Makes a Product with the Following Standard Costs

question 88

Multiple Choice

Tharaldson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June.
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 price variance for June is:

• A) $2,140 U
• B) $2,140 F
• C) $1,820 U
• D) $1,820 F

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Definitions:

High Levels

Typically refers to a greater than typical quantity, degree, or magnitude in a given context, such as high levels of anxiety or achievement.

Type A Personality

A personality type characterized by high levels of competitiveness, self-imposed stress, impatience, and urgency, often associated with a higher risk of heart disease.

Anger

A strong feeling of displeasure or hostility that often arises from a perceived wrong or injustice.

Friedman

Refers to Milton Friedman, an American economist known for his research in macroeconomics, consumption analysis, and advocacy of free-market capitalism.