The Following Information Summarizes the Standard Cost for Producing One

question 62

Multiple Choice

The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries. In addition, the variances for one month's production are given. Assume that all inventory accounts have zero balances at the beginning of the month.
$\begin{array}{lcc}&\text { Standard Cost Per }&\text {Standard Monthly }\\&\text { Uunit}&\text { Costs}\\\text { Materials } & \$ 4.00 & \$ 8,400 \\\text { Direct Labor 2 hrs @ \$2.60 } & 5.20 & 10,920\\\text { Factory Overhead: } & & \\\text { Variable } & 1.80 & 3,780 \\\text { Fixed } & \underline{5.00} & \underline{10,500}\\& \underline{\$16.00}& \underline{\$33,600}\end{array}$
$\begin{array}{llrl}\text { Variances: }\\\text { Material price } & \$ 244.75 & \text { unfavorable } \\\text { Material quantity } & \$ 500.00 & \text { unfavorable } \\\text { Labor rate } & \$ 520.00 & \text { favorable } \\\text { Labor efficiency } & \$ 2,080.00 & \text { unfavorable }\end{array}$

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What was the actual quantity of materials used during the month?

• A) 2,156
• B) 2,100
• C) 2,225
• D) 1,975

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