Ravena Labs

question 328

Multiple Choice

Ravena Labs., Incorporated makes a single product which has the following standards:Direct materials: 2.5 ounces at $20 per ounceDirect labor: 1.4 hours at $12.50 per hourVariable manufacturing overhead: 1.4 hours at 3.50 per hourVariable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October:3,750 units of compound were produced during the month.There was no beginning direct materials inventory.Direct materials purchased: 12,000 ounces for $225,000.The ending direct materials inventory was 2,000 ounces.Direct labor-hours worked: 5,600 hours at a cost of $67,200.Variable manufacturing overhead costs incurred amounted to $18,200.Variable manufacturing overhead applied to products: $18,375.The materials quantity variance for October is:

• A) $52,500 Unfavorable
• B) $52,500 Favorable
• C) $12,500 Unfavorable
• D) $12,500 Favorable

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Definitions:

Specially Endorses

When a negotiable instrument, such as a check, is endorsed by specifying the person to whom it should be paid, creating restrictions on its further negotiation.

Shelter Rule

A legal principle allowing a transferee to obtain the rights of a transferor in a transaction, even if the transferor lacked certain rights, under certain conditions.

Article 3

Refers to a specific section within a larger document, such as a Constitution or a code, often needing the context of the particular document to define accurately.

Forgery

is the fraudulent creation or alteration of a document with the intent to deceive others.