Doogan Corporation Makes a Product with the Following Standard Costs

question 192

Multiple Choice

Doogan Corporation makes a product with the following standard costs: The company produced 5,000 units in January using 10,310 grams of direct material and 2,290 direct labor-hours. During the month, the company purchased 10,880 grams of the direct material at $7.10 per gram. The actual direct labor rate was $11.70 per hour and the actual variable overhead rate was $3.00 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 January is:

• A) $2,170 Favorable
• B) $2,201 Unfavorable
• C) $2,201 Favorable
• D) $2,170 Unfavorable

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Definitions:

Risk Tolerance

An investor's capacity to endure market volatility and the possibility of losing money on investments.

Financial Security

An investment instrument issued by corporations, governments, or other entities that signifies ownership or a creditor relationship and promises payment of a financial obligation.

Risk-Averse Investors

Individuals who prefer to minimize their exposure to risk and are often willing to accept lower returns in exchange for greater certainty.

Risk-Neutral Investors

Investors who are indifferent to the risk of their investments, focusing solely on the expected returns without considering the variability of those returns.