Shade Company Adopted a Standard Cost System Several Years Ago

question 109

Multiple Choice

Shade Company adopted a standard cost system several years ago.The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms x $12.00 per kilogram) = $60.00/unit.Direct labor (3.5 hours x $20.00 per hour) = $70.00/unit.All materials were issued at the beginning of processing.The operating data shown below were taken from the records for December:
The direct materials usage variance for December is:

• A)$1,800 unfavorable.
• B)$1,800 favorable.
• C)$59,400 unfavorable.
• D)$59,400 favorable.

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Definitions:

Psychological Inquiry

A process of exploring and questioning to understand psychological concepts, behaviors, and phenomena.

Scientific Method

A systematic and logical procedure for discovering how things in the universe work, involving observation, hypothesis formation, experimentation, and conclusion.

Human Diversity

The vast range of differences among humans, including differences in ethnicity, gender, age, cultural background, disability, sexual orientation, and individual experiences.

Stanley Milgram

An American psychologist known for his research on obedience to authority figures, demonstrated in the Milgram experiment.