Reference: 11-03
the Albright Company Uses Standard Costing and Has

question 60

Multiple Choice

Reference: 11-03
The Albright Company uses standard costing and has established the following standards for its single product: $$\begin{array} { | l | l | } \hline \text { Direct materials } & 2 \text { litres at } \$ 3 \text { per litre } \\\hline \text { Direct labour } & 0.5 \text { hours at } \$ 8 \text { per hour } \\\hline \text { Variable manuf. overhead } & 0.5 \text { hours at } \$ 2 \text { per hour } \\\hline \begin{array} { l } \text { During November, the company made } 4,000 \text { units } \\\text { and incurred the following costs: }\end{array} & \\\hline \text { Direct materials purchased } & 8,100 \text { litres at } \$ 3.10 \\\hline & \text { per litre } \\\hline \text { Direct materials used } & 7,600 \text { litres } \\\hline \text { Direct labour used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual variable manuf. overhead } & \$ 4,175 \\\hline\end{array}$$ The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-The material price variance for November was?

• A)$2,310 F.
• B)$810 U.
• C)$2,310 U.
• D)$810 F.

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Definitions:

Melatonin

Hormone, secreted by the pineal gland, that is involved in biorhythms.

Day-Night Schedule

The daily cycle of light and darkness, influencing the behavior and physiological processes of living organisms.

Satiety

The feeling of fullness or satisfaction that signifies the end of eating, regulated by hormonal signals in response to food intake.

Hypothalamus

A region of the brain responsible for producing hormones that regulate fundamental bodily functions, including temperature, hunger, and thirst.