Figure 17-1
Max Company Has Developed the Following Standards for One

question 73

Multiple Choice

Figure 17-1
Max Company has developed the following standards for one of its products: $\begin{array}{ll}\text { Direct materials } & 15 \text { pounds } \times £ 16 \text { per pound } \\\text { Direct labour } & 4 \text { hours } \times £ 24 \text { per hour } \\\text { Variable overhead } & 4 \text { hours } \times £ 14 \text { per hour }\end{array}$ The following activities occurred during the month of October: $\begin{array}{lc}\text { Materials purchased } & 10,000 \text { pounds costing } £ 170,000 \\\text { Materials used } & 7,200 \text { pounds } \\\text { Units produced } & 500 \text { units } \\\text { Direct labour } & 2,300 \text { hours at } £ 23.60 \text { per hour } \\\text { Actual variable overhead } & £ 30,000\end{array}$ The company records materials price variances at the time of purchase.
-Refer to Figure 17-1. Max's materials price variance would be

• A)£50,000 favourable.
• B)£50,000 unfavourable.
• C)£10,000 unfavourable.
• D)£10,000 favourable.

Understand the role and benefits of academic advisors and mentors in college.

Grasp the concept of self-advocacy and personal resourcefulness in solving problems.

Recognize the importance of early investment and financial planning for future benefit.

Appreciate the significance of laws and regulations relevant to student life and financial decisions.

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Definitions:

FCFS System

First-Come, First-Served System, a processing sequence where the first item to arrive is the first to be processed, commonly used in queue management and scheduling.

Arrival Rate

In queuing theory, it is the average rate at which entities (e.g., customers, data packets) arrive at a service facility within a given time period.

Service Rate

The rate at which a service system can process requests, often measured in customers or transactions per unit of time.

Transient Period

A phase or interval of time that is temporary and often marks a transition between two states or conditions.