Figure 17-1
Max Company Has Developed the Following Standards for One

question 72

Multiple Choice

Figure 17-1
Max Company has developed the following standards for one of its products: $\begin{array}{ll}\text { Direct materials } & 15 \text { pounds } \times £ 16 \text { per pound } \\\text { Direct labour } & 4 \text { hours } \times £ 24 \text { per hour } \\\text { Variable overhead } & 4 \text { hours } \times £ 14 \text { per hour }\end{array}$ The following activities occurred during the month of October: $\begin{array}{lc}\text { Materials purchased } & 10,000 \text { pounds costing } £ 170,000 \\\text { Materials used } & 7,200 \text { pounds } \\\text { Units produced } & 500 \text { units } \\\text { Direct labour } & 2,300 \text { hours at } £ 23.60 \text { per hour } \\\text { Actual variable overhead } & £ 30,000\end{array}$ The company records materials price variances at the time of purchase.
-Refer to Figure 17-1. Max's variable standard cost per unit would be

• A)£392.
• B)£336.
• C)£296.
• D)£152.

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Definitions:

Market Share

The percentage of total sales in an industry generated by a particular company, indicating its strength in the market.

Product Line

A group of related products marketed by a single company.

Advertised Alongside

The practice of placing one's advertisements near relevant content or products to attract a targeted audience.

Revamped Products

Products that have been significantly modified or improved for better performance, appeal, or to meet current market trends.