Solly Corporation Produces a Product for National Distribution

question 381

Multiple Choice

Solly Corporation produces a product for national distribution. Standards for the product are:Materials: 12 ounces per unit at 60¢ per ounce.Labor: 2 hours per unit at $8 per hour.During the month of December, the company produced 1,000 units. Information for the month follows:Materials: 14,000 ounces purchased and used at a total cost of $7,700.Labor: 2,500 hours worked at a total cost of $20,625.The materials price variance is:

• A) $700 Unfavorable
• B) $600 Favorable
• C) $600 Unfavorable
• D) $700 Favorable

Understand the concept of production in economics.

Understand the distinction between economic profit and accounting profit.

Analyze production technologies using inputs of capital and labor.

Identify capital-intensive and labor-intensive technologies.

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Definitions:

Reception Area

A space inside or near the entrance of a building where visitors are greeted and wait to be attended to, often found in offices, hotels, and healthcare facilities.

Single-Booking

A method of scheduling in which only one patient is assigned to one block of time in a visit schedule.

Intake Forms

Documents filled out by new patients to provide their medical history and personal information to healthcare providers.

Reluctant

Showing hesitation or unwillingness to do something.