Tom and Jerry Have One Day to Work, but Two

question 101

Multiple Choice

Tom and Jerry have one day to work, but two tasks to focus on: building chairs and tables. If Tom spends all day building chairs, he will make 16 chairs. If he instead devotes his day to building tables, Tom will make 4 tables. If Jerry spends his day building chairs, he will make 14 chairs; if he spends the day building tables, he will make 7 tables. In one day, Tom can produce either:

• A) (16 chairs, 4 tables) or (8 chairs, 2 tables).
• B) (8 chairs, 2 tables) or (4 chairs, 6 tables).
• C) (8 chairs, 2 tables) or (4 chairs, 3 tables).
• D) (12 chairs, 3 tables) or (8 chairs, 3 tables).

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Definitions:

Materials Quantity Variance

Materials Quantity Variance is the difference between the expected amount of materials to produce a given output and the actual amount of materials used, highlighting efficiency in material usage.

Variable Overhead

Expenses that vary with production volume, such as utility costs in a factory.

Standard Costs

Predetermined or estimated costs for a product or service, used for budgeting purposes and as a benchmark for measuring performance.

Materials Price Variance

A measure of the difference between the actual cost of materials and the expected cost, based on the standard price.