The Frosty Company Makes Mugs for Which the Following Standards

question 74

Multiple Choice

The Frosty Company makes mugs for which the following standards have been developed: $$\begin{array} { l l l } & \text { Standard Inputs } & \text { Standard Price } \\& \text { Expected for Each } & \text { Expected per } \\& \text { Unit of Output } & \text { Unit of Output } \\\text { Direct materials } & 5 \text { ounces } & \$ 2 \text { per ounce } \\\text { Direct labor } & \text { 1.5 hours } & \$ 8 \text { per hour }\end{array}$$ Production of 400 mugs was expected in July, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. _ is the direct- material usage variance for July.

• A) $220 favorable
• B) $220 unfavorable
• C) $200 unfavorable
• D) $200 favorable

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Definitions:

PREA

The Prison Rape Elimination Act, U.S. federal law established to address the problem of sexual assault and rape in the nation's prisons and jails.

Bureau of Justice Statistics

A U.S. government agency responsible for collecting, analyzing, and disseminating crime and justice statistics.

Sexual Victimization

The act of subjecting someone to unwanted or forced sexual actions or behaviors.

Allegations

Claims or assertions that someone has done something illegal or wrong, typically made without proof.