Leonesio Corporation Makes a Product That Uses a Material with the Following

question 13

Multiple Choice

Leonesio Corporation makes a product that uses a material with the following standards: The company budgeted for production of 3,100 units in August, but actual production was 3,200 units. The company used 27,600 kilos of direct material to produce this output. The company purchased 29,000 kilos of the direct material at a total cost of $118,900. The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for August is:

• A) $5,576 Favorable
• B) $5,576 Unfavorable
• C) $5,440 Favorable
• D) $5,440 Unfavorable

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Definitions:

Water-Vascular System

A network of hydraulic canals unique to echinoderms, such as starfish, used for locomotion, feeding, and respiration.

Exoskeleton

External skeleton of some invertebrates; hard external parts that muscles attach to and move.

Shed

To cast off or discard something, such as skin or hair, through a natural process or to describe a simple, single-story structure used for storage.

Endoskeleton

Internal skeleton made up of hardened components such as bones.