The Cheers Company Makes Mugs for Which the Following Standards

question 78

Multiple Choice

The Cheers Company makes mugs for which the following standards have been developed: $\begin{array}{cc}&\text { Standard Inputs } & \text { Standard Frice } \\&\text { Expected for Each } & \text { Expected per } \\&\text { Unit of Output } & \text { Unit of Output }\\\hline\text { Direct materials } & 5 \text { ounces } & \$ 2 \text { per ounce } \\\text { Direct labor } & 1.5 \text { hours } & \$ 8 \text { per hour }\end{array}$ Production of 400 mugs was expected in July, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct-labor cost for the month was $5,310, and the actual pay per hour was $9.00._____ is the direct-material quantity variance for July.

• A)$220 unfavorable
• B)$220 favorable
• C)$200 unfavorable
• D)$200 favorable

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Definitions:

Positive and Reassuring

Description of communication or behaviors that affirm and support others, often enhancing group morale and individual confidence.

Withdrawal

The act of removing oneself from participation in an activity, situation, or group, often as a strategy to cope with stress or disagreement.

Sexual Attitudes

People's beliefs, feelings, and behaviors related to sexuality, which can vary widely between cultures and individuals.

Embarrassed

A feeling of self-consciousness, shame, or awkwardness experienced in a socially uncomfortable situation.