Electric Zero Produces Relay Units for Generators

question 25

Multiple Choice

Electric Zero produces relay units for generators.Each relay has a standard material cost of $67.Standards call for two relays per generator.In July, the company purchased 120 relays for $7,560.The company used 104 relays in the production of 50 generators, with 4 relays damaged in the installation process.The standard quantity of labor is 20 hours per generator, with a standard wage rate of $23.The company incurred 1,020 labor hours at a cost of $22,950.How much is the material price variance?

• A)$480 favorable
• B)$268 unfavorable
• C)$1,340 unfavorable
• D)$592 unfavorable

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Definitions:

Government Employees

Individuals who work within the various branches of the government (national, state, local) and are paid through the public sector budget.

Private Sector Workers

Employees who work for businesses owned by individuals or entities other than the government or public sector.

Phalanges

The bones of the fingers and toes.

Carpals

The bones that form the wrist, connecting the forearm to the hand.