Bulluck Corporation Makes a Product with the Following Standard Costs

question 221

Multiple Choice

Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July.
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 July is:

• A) $2,100 U
• B) $2,420 F
• C) $2,100 F
• D) $2,420 U

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Definitions:

Mindguards

Individuals within a group who limit access to information to prevent dissent or critical thinking that might challenge the group's consensus.

Protecting

Ensuring safety or defending something from harm, damage, or adverse conditions.

Illusion of Invulnerability

A cognitive bias leading individuals or groups to underestimate risks and overestimate their ability to control outcomes.

Groupthink

A psychological phenomenon occurring within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.