A Company Makes a Product Using Two Materials, One of Which

question 113

Multiple Choice

A company makes a product using two materials, one of which is interchangeable with a third material. The standards for producing one 200-pound batch are presented below. The last 200-pound batch was produced using 140 pounds of M and 90 pounds of O. The price of M was $0.03 per pound and the actual price of O was $0.10.
$$\begin{array} { l c c c } & \text { Standard Quartity } & \text { Standard } & \\\text { Material } & ( \mathrm { Ibs } ) & \text { Cost/lb. } & \text { Total Cost } \\\mathrm { O } & 0 & \$ 0.10 & \$ 0 \\\mathrm { H } & 80 & 0.08 & 6.40 \\\mathrm { M } & \underline{120} & 0.02 & \underline{ 2.40} \\& \underline{200} & & \underline{ \$ 8.80}\end{array}$$
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Is the material mix variance favorable or unfavorable?

• A) Favorable.
• B) Unfavorable.

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Definitions:

Sensory Neurons

Nerve cells that transmit sensory information (sight, sound, touch, etc.) to the central nervous system.

Motor Neurons

Nerve cells forming part of the pathway along which impulses pass from the brain or spinal cord to a muscle or gland, facilitating movement and action.

Synaptic Neurons

Neurons that are capable of transmitting a nerve impulse across a synapse to a postsynaptic element, such as another nerve, muscle, or gland.

Efferent Neurons

Nerve cells that carry neural impulses away from the central nervous system toward muscles to cause movement, also known as motor neurons.