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

question 94

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 yield variance favorable or unfavorable?

• A) Favorable.
• B) Unfavorable.

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Definitions:

Hippocampus

A region of the brain involved in learning and memory formation.

Declarative Memory

The aspect of human memory that involves the recall of facts and events, known as 'knowing what', contrasted with procedural memory, which is 'knowing how'.

Sensory Memory

The shortest-term element of memory, which is the ability to retain impressions of sensory information after the original stimuli have ended.

CREB

A cellular transcription factor that activates gene expression in response to various stimuli, playing a key role in many cellular processes including memory formation.