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

question 44

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 labour rate variance would be

• A)£920 unfavourable.
• B)£920 favourable.
• C)£800 unfavourable.
• D)£800 favourable.

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Definitions:

Chromatids

Each of the two thread-like strands into which a chromosome divides longitudinally during cell division. Each contains a double helix of DNA.

Nuclear Envelope

Double membrane that surrounds the nucleus in eukaryotic cells and is connected to the endoplasmic reticulum; has pores that allow substances to pass between the nucleus and the cytoplasm.

Mitosis

A process of cell division that results in two genetically identical daughter cells developed from a single cell, ensuring that each daughter cell receives an exact copy of the parent cell's DNA.

Chromosomes

Structures within the cell nucleus made of DNA and protein, containing genes that are the blueprint for an organism's traits and functions.