Miguez Corporation Makes a Product with the Following Standard Costs

question 371

Multiple Choice

Miguez Corporation makes a product with the following standard costs: The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour.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 September is:

• A) $2,170 Unfavorable
• B) $2,232 Unfavorable
• C) $2,170 Favorable
• D) $2,232 Favorable

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Definitions:

Resilience

The capacity to recover quickly from difficulties or to bounce back from setbacks, displaying strength and adaptability.

Patience

The capacity to accept or tolerate delay, trouble, or suffering without getting angry or upset.

Tolerance

The ability or willingness to tolerate the existence of opinions or behavior that one dislikes or disagrees with.

Accommodating

Showing willingness to adjust actions or decisions to take into account others' needs or preferences.