The Charger Company Makes Tables for Which the Following Standards

question 53

Multiple Choice

The Charger Company makes tables for which the following standards have been developed: $\begin{array}{cc}&\text { Standard Inputs } & \text { Standard Frice } \\&\text { Expected for Each } & \text { Expected per } \\&\text { Unit of Output } & \text { Unit of Output }\\\hline\text { Direct materials } & 10 \text { pounds } & \$ 4 \text { per pound } \\\text { Directlabor } & 3 \text { hours } & \$ 16 \text { per hour }\end{array}$ Production of 230 tables was expected in July, but 250 tables were actually completed. Direct materials purchased and used were 2,200 pounds at an actual price of $4.50 per pound.Direct-labor cost for the month was $10,620, and the actual pay per hour was $18.00._____ is the direct-material price variance for July.

• A)$1,100 unfavorable
• B)$1,100 favorable
• C)$800 unfavorable
• D)$800 favorable

Understand the two-variance approach to analyzing overhead variances and its application.

Analyze management performance using variance reports and identify corrective actions.

Differentiate between standards and budgets in manufacturing contexts.

Understand the concept of variances in managerial accounting, including materials price variance and materials quantity variance.

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Definitions:

Genetically Distinct Cells

Cells that have a unique genetic makeup, distinguishing them from other cells within an organism or between organisms.

Genetically Identical Cells

Cells that have exactly the same DNA sequence, typically arising from the division of a single cell or from cloning processes.

Intracellular Shells

Membrane-bound organelles within a cell that compartmentalize cellular processes and substances.

Interlocking Plates

Structural elements that fit together closely to provide support and resistance, often found in natural armor or engineering designs.