Miguez Corporation Makes a Product with the Following Standard Costs

question 54

Multiple Choice

Miguez Corporation makes a product with the following standard costs: The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour.The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for September is:

• A) $1,150 Unfavorable
• B) $1,150 Favorable
• C) $1,160 Favorable
• D) $1,160 Unfavorable

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Definitions:

Tortious Conduct

Involves actions or omissions that wrongfully harm others and may give rise to liability under tort law.

Principal Directly

Pertains to actions or decisions made by the main party involved in a contract or legal agreement, without intermediaries.

Negligent

Failing to take appropriate care in doing something, which results in damage or harm to another party.

Anticipated Injury

Anticipated injury refers to harm or damage that is expected or foreseen as a result of certain actions or omissions.