Holly Industries Manufactures Artificial Holiday Wreaths

question 180

Multiple Choice

Holly Industries manufactures artificial holiday wreaths.Its most popular wreath requires 3 yards of artificial pine boughs and 15 sprigs of holly berries.In August, the company purchased 4,000 yards of artificial pine bough, and 20,000 sprigs of holly berries.Holly paid $2.65 per yard for the artificial pine bough and purchased 4 boxes of 5,000 sprigs of holly berries for $7,000 per box.The standard price for artificial pine bough is $2.60 per yard, and the standard price per sprig of holly berry is $1.45.During August, Holly produced 1,250 wreaths and used 3,625 yards of artificial pine bough and 19,000 sprigs of holly berries.What is Holly's direct materials quantity variance for sprigs of holly berries for August?

• A)$1,000 unfavorable
• B)$1,000 favorable
• C)$362.50 favorable
• D)$362.50 unfavorable

---

Definitions:

Logistics

The coordination and management of moving goods from their point of origin to their final destination.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, often summarized as product, price, place, and promotion.

Promotion

A marketing strategy used to increase awareness, interest, and sales of a product or service through various means such as advertising, sales, and public relations.

Customer Value

How a customer views the worth of a product or service relative to alternative choices.