Majer Corporation Makes a Product with the Following Standard Costs

question 406

Multiple Choice

Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February.
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 quantity variance for February is:

• A) $8,100 Favorable
• B) $8,037 Favorable
• C) $8,100 Unfavorable
• D) $8,037 Unfavorable

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Definitions:

Maintenance

The process of preserving a condition or situation or the process of keeping equipment or systems operational and in good working condition.

Staffing Budget

A staffing budget outlines the financial resources allocated for hiring and compensating employees within a specific time period.

Nonmanufacturing Businesses

Companies that do not produce physical goods, focusing instead on services, retail, distribution, and other non-manufacturing activities.

Operating Expenses Budget

A financial plan detailing the forecasted expenses required to manage and administer a business outside of direct production costs.