Bulluck Corporation Makes a Product with the Following Standard Costs

question 268

Multiple Choice

Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July.
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 July is:

• A) $870 Unfavorable
• B) $1,044 Unfavorable
• C) $870 Favorable
• D) $1,044 Favorable

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Definitions:

Charge a Price

The act of assigning a monetary value to a product or service that customers must pay to obtain it.

Marginal Cost

is the cost incurred by producing one additional unit of a product or service.

Profits

The financial gain made in a transaction or operation, calculated as the difference between revenue and expenses.

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for revenue.