Miguez Corporation Makes a Product with the Following Standard Costs

question 54

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 price variance for September is:

• A) $1,150 Unfavorable
• B) $1,150 Favorable
• C) $1,160 Favorable
• D) $1,160 Unfavorable

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Definitions:

Directions

Instructions or guidelines provided to guide behavior or actions towards a particular task or goal.

Infant Development

The physical, cognitive, emotional, and social growth that occurs in babies from birth to the end of their second year.

Stimulus

Anything that can prompt a physiological or psychological response or reaction in an organism.

Bayley-III

The third edition of the Bayley Scales of Infant and Toddler Development, a comprehensive tool for assessing developmental functioning in young children.