Gipple Corporation Makes a Product That Uses a Material with the Quantity

question 118

Multiple Choice

Gipple Corporation makes a product that uses a material with the quantity standard of 9.2 grams per unit of output and the price standard of $7.90 per gram. In January the company produced 5,300 units using 26,770 grams of the direct material. During the month the company purchased 29,300 grams of the direct material at $8.00 per gram. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for January is:

• A) $4,876 Favorable
• B) $2,930 Unfavorable
• C) $4,876 Unfavorable
• D) $2,930 Favorable

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Definitions:

President Eisenhower

Dwight D. Eisenhower, the 34th President of the United States, who served from 1953 to 1961 and was known for his role in ending the Korean War and promoting infrastructure development.

Recessions

A season of ephemeral economic retreat, observed through decreased levels of commerce and industrial production, commonly distinguished by a fall in GDP in consecutive quarters.

Unemployment Rate

The percentage of the workforce that is unemployed and in active search of employment opportunities.

Economic Expansion

A phase of the business cycle where the economy grows and experiences increased levels of production, employment, and consumer spending.