Standard Gears Produces Lawn Mower Gears What Is the Direct Material Quantity Variance?
A)$465 Favorable
B)$1,846

question 65

Multiple Choice

Standard Gears produces lawn mower gears.It uses units as the cost driver for overhead.The following information was provided concerning its standard cost system: $\begin{array}{|l|l|l|l|}\hline{\text { Actual Data }} &&{\text { Budgeted and Stand ard Data }} \\\hline \text { Produced } & 12,400 \text { units } & \text { Budgeted units } & 12,500 \text { units } \\\hline \text { Materials purchased } & \begin{array}{c}4,650 \mathrm{lbs} . \text { for a total cost of } \\\$ 32,550\end{array} & \text { Budgeted materials } & 0.40 \mathrm{lb} . @ \$ 7.10 \text { per } \mathrm{lb} . \\\hline \text { Materials used } & 4,700 \mathrm{lbs} . &\text { Budgeted labor }& \begin{array}{c}36 \text { minutes } @ \$ 11.00 \text { per } \\\text { hour }\end{array} \\\hline \text { Labor worked } & 7,460 \text { hrs. costing } \$ 79,822 & \begin{array}{l}\text { Budgeted variable } \\\text { overhead }\end{array} & \$ 35,625 \\\hline \text { Actual overhead } & \begin{array}{l}\text { Fixed: } \$ 84,800 \\\text { Variable } \$ 36,100\end{array} & \begin{array}{l}\text { Budgeted fixed } \\\text { overhead }\end{array} & \$ 85,500 \\\hline\end{array}$ What is the direct material quantity variance?

• A)$465 favorable
• B)$1,846 favorable
• C)$470 favorable
• D)$2,201 favorable

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Denial

A defense mechanism where a person refuses to accept reality or facts, effectively blocking external events from awareness.

Refusal To Believe

The act of deliberately choosing not to accept or acknowledge information or facts, often despite evidence to the contrary, which can stem from various cognitive or emotional reasons.

Defense Mechanism

A psychological strategy unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.