Electric Zero Produces Relay Units for Generators

question 21

Multiple Choice

Electric Zero produces relay units for generators.Each relay has a standard material cost of $67.Standards call for two relays per generator.In July, the company purchased 120 relays for $7,560.The company used 104 relays in the production of 50 generators, with 4 relays damaged in the installation process.The standard quantity of labor is 20 hours per generator, with a standard wage rate of $23.The company incurred 1,020 labor hours at a cost of $22,950.How much is the material quantity variance?

• A)$480 favorable
• B)$268 unfavorable
• C)$1,340 unfavorable
• D)$592 unfavorable

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Definitions:

Eschar

A slough or piece of dead tissue that is cast off from the surface of the skin, particularly after a burn injury.

Pressure Ulcer

A localized injury to the skin and/or underlying tissue, usually over a bony prominence, as a result of pressure, or pressure in combination with shear.

Coccyx

The small, triangular bone at the base of the spinal column, commonly referred to as the tailbone, which can be a source of pain if injured.

Serosanguineous

Pertaining to a fluid that is a mixture of serum and blood, typically seen in wounds as a type of discharge.