Reference: 11-09
the Following Materials Standards Have Been Established for a Particular

question 65

Multiple Choice

Reference: 11-09
The following materials standards have been established for a particular product: $$\begin{array}{l}\begin{array} { | l | l | l | } \hline \text { Standard quantity per unit of output } & 6.8 & \text { metres } \\\hline \text { Standard price } & \$ 17.10 & \text { per metre } \\\hline\end{array}\\\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | l | l | } \hline \text { Actual materials purchased } & 9,000 & \text { metres } \\\hline \text { Actual cost of materials purchased } & \$ 156,600 & \\\hline \text { Actual materials used in production } & 8,500 & \text { metres } \\\hline \text { Actual output } & 1,200 & \text { units } \\\hline\end{array}\end{array}$$
-A labour efficiency variance resulting from the use of poor quality materials should be charged to:

• A)the production manager.
• B)manufacturing overhead.
• C)the engineering department.
• D)the purchasing agent.

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Definitions:

Organized Message

A communicated message that is systematically arranged and structured for clarity and effectiveness.

Color-coding

A system for displaying information by using different colors to categorize, organize, or prioritize.

Filing System

An organized method for storing documents, files, and information so they can be easily retrieved, managed, and kept in order.

Indexing

The naming of a file.