Ravena Labs

question 328

Multiple Choice

Ravena Labs., Incorporated makes a single product which has the following standards:Direct materials: 2.5 ounces at $20 per ounceDirect labor: 1.4 hours at $12.50 per hourVariable manufacturing overhead: 1.4 hours at 3.50 per hourVariable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October:3,750 units of compound were produced during the month.There was no beginning direct materials inventory.Direct materials purchased: 12,000 ounces for $225,000.The ending direct materials inventory was 2,000 ounces.Direct labor-hours worked: 5,600 hours at a cost of $67,200.Variable manufacturing overhead costs incurred amounted to $18,200.Variable manufacturing overhead applied to products: $18,375.The materials quantity variance for October is:

• A) $52,500 Unfavorable
• B) $52,500 Favorable
• C) $12,500 Unfavorable
• D) $12,500 Favorable

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Definitions:

Oceans

Large bodies of saltwater that cover approximately 71% of the Earth's surface and serve as a critical part of the planet's climate system and habitat for marine life.

Biological Magnification

The process by which the concentration of toxic substances increases in each successive link in the food chain.

Bioaccumulation

The buildup of a persistent toxic substance, such as certain pesticides, in an organism’s body.

DDT

Dichloro-Diphenyl-Trichloroethane, a synthetic insecticide used historically for malaria and pest control, now banned in many countries due to environmental impact.