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:

Accomplish Tasks

The act of successfully completing specific activities or objectives.

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The measure of a team's ability to achieve its goals and objectives in an efficient and timely manner.

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The raw materials, labor, and other resources used in the production of goods and services.

Team Process

The sequence of actions, interactions, and methods used by a team to achieve its objectives efficiently.