Magno Cereal Corporation Uses a Standard Cost System for Its

question 260

Multiple Choice

Magno Cereal Corporation uses a standard cost system for its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for August?

• A) $1,500 Unfavorable
• B) $18,000 Favorable
• C) $19,500 Unfavorable
• D) $54,000 Unfavorable

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Definitions:

Confounds

Variables other than the independent variable that may cause an effect in an experimental design, thus confusing the results.

Random Assignment

A method used in experiments where participants are randomly placed into either the control or experimental group to ensure that each group is similar at the start.

Experimental Research

Experimental research is a methodological approach that systematically manipulates one variable to determine its effect on another variable, within a controlled environment.

Random Assignment

A method used in experiments to distribute participants across various control and experimental groups in a way that each participant has an equal chance of being assigned to any group, minimizing biases.