Doogan Corporation Makes a Product with the Following Standard Costs

question 67

Multiple Choice

Doogan Corporation makes a product with the following standard costs: The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 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 January is:

• A) $13,320 Unfavorable
• B) $13,320 Favorable
• C) $11,544 Favorable
• D) $11,544 Unfavorable

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Definitions:

P Wave

The first wave in an electrocardiogram, representing the depolarization of the atria of the heart.

Electrical Impulse

A sudden surge of electrical energy or power, typically referring to the signals transmitted within biological organisms, especially neurons.

T Wave

A component of the ECG representing the repolarization of the ventricles of the heart.

Ventricles

The two lower chambers of the heart that receive blood from the atria and pump it to the lungs and body.