Ingredient A12H Is a Material Used to Make Calvin Corporation's

question 60

Multiple Choice

Ingredient A12H is a material used to make Calvin Corporation's major product. The standard cost of Ingredient A12H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below:
$\begin{array}{lr} \text {Cost of material purchased in October } & \text { \$23.10per ounce } \\ \text {Material purchased in October } & \text { 2,300 ounces} \\ \text { Material used in production in October } & \text { 2,120 ounces} \\ \text { Actual output in October } & \text { 600 units} \\\end{array}$

The material was purchased on account and Calvin Corporation uses a standard costing system.
-
The Material Efficiency Variance for October would be recorded as a:

• A) credit of $3,680.
• B) debit of $4,140.
• C) credit of $4,140.
• D) debit of $3,680.

---

Definitions:

Spending Power

The financial ability or capacity of an entity (individual, government, or organization) to make purchases or invest, influencing economic activity.

Enumerated Power

Powers that are specifically listed in the Constitution that define the authority of a particular branch of government.

Regulatory Ends

Objectives or goals that regulations aim to achieve, typically involving protecting public welfare, safety, health, and ensuring fair market practices.

Interstate Commerce

The conduct of trade, business, or transportation between states within a country, subject to federal regulations.