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:

Dorsal Surface

The upper or back side of the body or body part, opposite to the ventral or front side.

Palmar Surface

The front region of the hand that extends from the wrist to the bases of the fingers.

Ophthalmoscope

A medical instrument used by healthcare professionals to examine the interior structures of the eye, including the retina and optic nerve.

Astigmatism

A common vision condition caused by an imperfection in the curvature of the eye's cornea or lens, leading to blurred or distorted vision.