Reference: 11-05
the Dexon Company Makes and Sells a Single

question 89

Multiple Choice

Reference: 11-05
The Dexon Company makes and sells a single product called a Mip and employs a standard costing system. The following standards have been established for one unit of Mip: $$\begin{array} { | l | l | l | } \hline & \text { Standard Quantity of Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct materials } & 6 \text { board metres } & \$ 9.00 \\\hline \text { Direct labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$$ There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $20,060.
-To record the purchase of direct materials, the general ledger would include what entry to the materials price variance account?

• A)$1,500 credit.
• B)$1,500 debit.
• C)$6,000 debit.
• D)$6,000 credit.

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Definitions:

Secure Attachment

A type of attachment characterized by infants who show distress when separated from caregivers but are able to compose themselves knowing that their caregiver will return.

Avoidant Attachment

Avoidant attachment is a type of insecure attachment where individuals tend to keep emotional distance and may avoid close relationships.

Clings

The act of holding tightly to something or someone, often driven by a need for emotional security or attachment.

Extremely Upset

A heightened state of distress or agitation often resulting from difficult or emotional experiences.