The Vito Company Makes Tables for Which the Following Standards

question 128

Multiple Choice

The Vito Company makes tables for which the following standards have been developed: $\begin{array}{cc}&\text { Standard Inputs } & \text { Standard Frice } \\&\text { Expected for Each } & \text { Expected per } \\&\text { Unit of Output } & \text { Unit of Output }\\\hline\text { Direct materials } & 10 \text { pounds } & \$ 4 \text { per pound } \\\text { Direct labor } & 3 \text { hours } & \$ 16 \text { per hour }\end{array}$ Production of 200 tables was expected in July, but 220 tables were actually completed. Direct materials purchased and used were 2,000 pounds at an actual price of $4.40 per pound.Direct-labor cost for the month was $10,620, and the actual pay per hour was $18.00._____ is the direct-material quantity variance for July.

• A)$880 unfavorable
• B)$880 favorable
• C)$800 unfavorable
• D)$800 favorable

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Definitions:

Hot Tub

A large tub filled with hot water and used for relaxation or hydrotherapy, often equipped with jets for massage.

Tinker Creek

A stream in Virginia, notably written about by Annie Dillard in her work "Pilgrim at Tinker Creek," exploring nature and life.

Shade Trees

Large trees planted specifically to provide shade and reduce heat in surrounding areas, often enhancing comfort and energy efficiency.

Sand Dunes

Natural accumulations of sand typically found in deserts and on beaches, shaped by the wind or water flow.