Efficient Corporation Uses a Standard Cost System ? the Direct Materials Cost Variance Is:
A) $1,125 Favorable

question 66

Multiple Choice

Efficient Corporation uses a standard cost system.The following information was provided for the period that just ended: $\begin{array}{ll}\text { Actual price per gallon } & \$ 11.75 \\\text { Actual gallons of material used } & 5,000 \\\text { Actual hourly labor rate } & \$ 17.00 \\\text { Actual hours of production } & 24,300 \\\text { Standard price per gallon } & \$ 12.00 \\\text { Standard gallons per completed unit } & 1 / 2 \\\text { Standard hourly labor rate } & \$ 12.00 \\\text { Standard time per completed unit } & 3 \text { hrs. } \\\text { Units completed during the period } & 9,000\end{array}$ ? The direct materials cost variance is:

• A) $1,125 favorable.
• B) $4,750 unfavorable.
• C) $6,000 unfavorable.
• D) $7,125 unfavorable.

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Definitions:

Extinction

In psychology, the gradual weakening of a conditioned response when the conditioned stimulus is presented without the unconditioned stimulus.

Conditioned Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer.

Variable-Ratio Reinforcement Schedule

A reinforcement strategy where a response is reinforced after an unpredictable number of responses, which typically leads to high and steady response rates.

Principle of "Sameness"

This term refers to the cognitive process of recognizing and treating different stimuli as equivalent or having the same meaning or category.