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

question 103

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 quantity variance for November was:

• A)$1,200 F.
• B)$1,200 U.
• C)$1,500 F.
• D)$300 U.

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Definitions:

Psychological Factors

Elements of human behavior that influence how individuals think, feel, and act.

Sympathetic Nervous System

Part of the autonomic nervous system that controls the body's responses to stress and regulates bodily functions such as heart rate, digestion, and respiratory rate.

General Adaptation Syndrome

A model describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Resistance Stage

The second stage of the general adaptation syndrome (GAS), in which the body adapts to a stressor.