Use the Following Data That Relate to Product No

question 78

Multiple Choice

Use the following data that relate to product no. 89 of Mansion Corporation to answer the following Questions
Direct material standard: 3 square feet at $2.50 per square foot
Direct material purchased: 30,000 square feet at $2.60 per square foot
Direct material consumed: 29,200 square feet
Manufacturing activity: 9,600 units completed

Assume that the company computes variances at the earliest point in time.

-The direct-material quantity variance is:

• A) $1,000F.
• B) $1,000U.
• C) $1,040F.
• D) $1,040U.
• E) $2,000F.

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Definitions:

Obedience

The act of following orders or commands from someone in authority, often studied in social psychology.

Technique

A systematic procedure, method, or art applied by a particular task, performance, or craft.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or pressures.

Asch

Solomon Asch was a psychologist best known for his work on conformity experiments, demonstrating how group pressure could influence individuals to conform to incorrect answers.