Frogue Corporation Uses a Standard Cost System ? the Direct Materials Cost Variance Is:
A) $6,500 Unfavorable

question 148

Multiple Choice

Frogue Corporation uses a standard cost system.The following information was provided for the period that just ended: $$\begin{array} { l l } \text { Actual price per kilogram } & \$ 2.50 \\\text { Actual kilograms of material used } & 31,000 \\\text { Actual hourly labor rate } & \$ 18.10 \\\text { Actual hours of production } & 4,900 \text { labor hrs. } \\\text { Standard price per kilogram } & \$ 2.80 \\\text { Standard kilograms per completed unit } & 6 \text { kilograms } \\\text { Standard hourly labor rate } & \$ 18.00 \\\text { Standard time per completed unit } & 1 \mathrm { hr } . \\\text { Actual total factory overhead } & \$ 34,900 \\\text { Actual fixed factory overhead } & \$ 18,000 \\\text { Standard fixed factory overhead rate } & \$ 1.20 \text { per labor hour } \\\text { Standard variable factory overhead rate } & \$ 3.80 \text { per labor hour } \\\text { Maximum plant capacity } & 15,000 \text { hours } \\\text { Units completed during the period } & 5,000\end{array}$$ ? The direct materials cost variance is:

• A) $6,500 unfavorable.
• B) $9,000 unfavorable.
• C) $9,000 favorable.
• D) $6,500 favorable.

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