Robnett Corporation Manufactures One Product

question 455

Multiple Choice

Robnett Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows: During the year, the company completed the following transactions:a. Purchased 106,900 liters of raw material at a price of $6.80 per liter.b. Used 93,760 liters of the raw material to produce 24,700 units of work in process.Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.
When the purchase of raw materials is recorded in transaction (a) above, which of the following entries will be made?

• A) $32,070 in the Materials Price Variance column
• B) ($32,070) in the Materials Quantity Variance column
• C) $32,070 in the Materials Quantity Variance column
• D) ($32,070) in the Materials Price Variance column

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Definitions:

Union Services

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Unionized Facility

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The act of a union serving as the official body that negotiates and interacts with employers on behalf of its members.

National Labor Relations Act

A foundational US law enacted in 1935 that protects the rights of employees to organize, bargain collectively, and engage in other union activities.