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

question 7

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.
-Drake Company purchased materials on account. The entry to record the purchase of materials having a standard cost of $1.50 per gram from a supplier at $1.60 per gram would include a:

• A)credit to raw materials inventory.
• B)debit to materials price variance.
• C)credit to materials price variance.
• D)debit to work in process.

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Definitions:

Culturally Defined

Characteristics or norms that are identified and accepted by a particular society or group based on shared values and beliefs.

Cultural Scripts

Normative guidelines for behavior and understanding in various social contexts that are learned and shared within a cultural or social group.

Cultural Context

The societal, ethnic, and cultural background that influences an individual's behavior, perceptions, and interactions with others.

Compliance

The act of conforming, submitting, or adapting one's behavior in accordance with others' wishes, rules, or regulations.