Standard Gears Produces Lawn Mower Gears What Is the Direct Material Quantity Variance?
A) $465 Favorable

question 91

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:
$\begin{array}{ll}\text { Actual Data }&\text { Budgeted and Standard Data }\\\begin{array}{|l|c|}\hline \text { Produced } & 12,400 \text { units } \\\hline \text { Materials purchased } & 4,650 \text { lbs. for a total cost of } \$ 32,550 \\\hline \text { Materials used } & 4,700 \text { lbs. } \\\hline \text { Labor worked } & 7,460 \mathrm{hrs} \text {. costing } \$ 79,822 \\\hline \text { Actual overhead } & \text { Fixed: } \$ 84,800 \\&\text { Variable } \$ 36,100\\\hline\end{array}&\begin{array}{|l|c|}\hline \text { Budgeted units } & 12,500 \text { units } \\\hline \text { Budgeted materials } & 0.401 \mathrm{1b} @ \$ 7.10 \text { per } 1 \mathrm{~b} . \\\hline \text { Budgeted labor } & 36 \text { minutes @ } \$ 11.00 \text { per hour } \\\hline \text { Budgeted variable overhead } & \$ 35,625 \\\hline \text { Budgeted fixed overhead } & \$ 85,500\\\\\hline \end{array}\end{array}$
What is the direct material quantity variance?

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

Understand the key factors contributing to business success in diverse and global work environments.

Identify effective diversity management practices.

Recognize the characteristics of an effective leader in a multicultural environment.

Comprehend the shared ethical values across different generations.

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Definitions:

Advertising Budget

The allocation of funds dedicated to marketing communication and promotional activities over a specific time period.

Informational Appeal

Advertising or communication strategies that focus on providing factual information or logical arguments to persuade consumers.

Emotional Appeal

A persuasive technique used in advertising and marketing to create an emotional response in the audience, aiming to influence their purchasing decisions.

Utilitarian Needs

The practical or functional aspects that consumers consider when purchasing a product, focusing on the utility and efficiency it provides.