Standard Gears Produces Lawn Mower Gears How Much Is the Direct Material Price Variance?
A) $465

question 109

Multiple Choice

Standard Gears produces lawn mower gears. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system:
$\begin{array}{ll}\text { Actual Data }&\text { Budgeted and Standard Data }\\\begin{array}{|l|c|}\hline \text { Produced } & 12,400 \text { units } \\\hline \text { Materials purchased } & 4,650 \text { lbs. for a total cost of } \$ 32,550 \\\hline \text { Materials used } & 4,700 \text { lbs. } \\\hline \text { Labor worked } & 7,460 \mathrm{hrs} \text {. costing } \$ 79,822 \\\hline \text { Actual overhead } & \text { Fixed: } \$ 84,800 \\&\text { Variable } \$ 36,100\\\hline\end{array}&\begin{array}{|l|c|}\hline \text { Budgeted units } & 12,500 \text { units } \\\hline \text { Budgeted materials } & 0.401 \mathrm{1b} @ \$ 7.10 \text { per } 1 \mathrm{~b} . \\\hline \text { Budgeted labor } & 36 \text { minutes @ } \$ 11.00 \text { per hour } \\\hline \text { Budgeted variable overhead } & \$ 35,625 \\\hline \text { Budgeted fixed overhead } & \$ 85,500\\\\\hline \end{array}\end{array}$
How much is the direct material price variance?

• A) $465 favorable
• B) $1,846 favorable
• C) $470 favorable
• D) $2,201 favorable

Comprehend the significance of business ethics in modern work trends.

Realize the extent of listening involvement in professional settings and its effectiveness.

Understand the concept of active listening and ways to demonstrate it effectively.

Appreciate the importance of soft skills, including problem-solving and ethical decision-making.

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Definitions:

Mobile Devices

Portable electronic devices such as smartphones and tablets that have the capability to perform a variety of functions including calling, texting, browsing the internet, and running applications.

White Space

In design, the intentional use of unmarked space in the layout to create a cleaner, more readable structure.

Design Elements

Basic units and visual aspects used to create and compose a piece of artwork or a design.

Restraint

The act of limiting, controlling, or moderating something, or the ability to exercise self-control.