Welch Company Budgeted the Following Cost Standards for the Current $= 1.40$

question 54

Multiple Choice

Welch Company budgeted the following cost standards for the current year: Direct materials $= 1.40$ kilograms per unit $@\$ 1.50$ per kilogram
Direct labour $= 0.75$ hours per unit $@ \$ 6$ per hour
Actual production and costs were as follows:
Units produced $= 2,800$
Direct materials used $= 4,500 \mathrm {~kg}$
Direct materials purchased $= 5,000 \mathrm {~kg}@$ a cost of $\$ 5,850$
Direct labour incurred $= 2,000$ hours at a cost of $\$ 13,000$
The material efficiency variance was:

• A) $1,650 F
• B) $870 U
• C) $2,520 U
• D) $780 F

---

Definitions:

Nutritive Fluid

A liquid rich in nutrients that provides essential nourishment to organisms or cells for growth and maintenance.

Epididymis

A coiled tube that receives sperm from the testis and conveys it to the vas deferens.

Sexual Reproduction

The process by which organisms produce offspring through the combination of genetic materials from two different cells, typically involving male and female gametes.

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, contributing to its ability to adapt and survive changes.