Information Concerning Johnston Co

question 32

Multiple Choice

Information concerning Johnston Co.'s direct materials costs is as follows:The direct materials usage variance for the period, rounded to two decimal places, is:

• A) $307.50 unfavorable.
• B) $307.50 favorable.
• C) $322.50 unfavorable.
• D) $322.50 favorable.
• E) $532.50 favorable.

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Definitions:

Super-variable Costing

A hypothetical or extreme approach to variable costing where only the most directly variable costs are considered in product or service pricing.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.

Direct Materials

are raw materials that can be directly attributed to the production process of a specific product, such as wood for furniture or metal for cars.

Break-even Points

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.