Fluegge Incorporated Has Provided the Following Data Concerning One of the Products

question 96

Multiple Choice

Fluegge Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December:
The raw materials price variance for the month is closest to:

• A) $15,060 Unfavorable
• B) $14,016 Favorable
• C) $15,060 Favorable
• D) $14,016 Unfavorable

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Definitions:

Price Searchers

Firms or individuals who actively seek out and compare prices in an effort to find the most favorable market conditions.

Price Takers

Economic agents who accept the prevailing market prices and have no influence over them due to their small market share.

Barriers To Entry

Obstacles that make it difficult to enter a particular market, such as high start-up costs, access to technology, or strict regulations.

Dynamic Process

A process characterized by constant change, activity, or progress.