Cibolo Company
Cibolo Company Has the Following Information Available for March

question 142

Multiple Choice

Cibolo Company
Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar) .
$\begin{array}{ll}\text { Standards: } &4.0 \text { pounds } \\\text { Material } & \text { per unit @ } \\& \$ 5.25 \text { per } \\& \text { pound } \\& 6.0 \text { hours } \\\text { Labor } & \text { per unit @ } \\& \$ 10.00 \text { per } \\& \text { hour }\end{array}$

$\begin{array}{ll}\text { Actual: } & \\\text { Material purchased } & 17,500 \\& \text { pounds } @ \\& \$ 5.10 \\\text { Material used } & 16,700 \\& \text { pounds } \\25,500 \text { direct1abor hours @ } &\end{array}$
$\$9.85 \text { per hour }$






Refer to Cibolo Company.What is the material price variance (based on quantity purchased) ?

• A)$2,505 F
• B)$2, 505 F
• C)$2,625 F
• D)$2 ,625 F.

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Definitions:

High-Quality

A term used to describe products or services that meet or exceed the expectations of customers, characterized by superior performance, durability, and error-free operation.

Technical Sophistication

Technical sophistication refers to the level of advanced technological features and capabilities present in a product or system.

Complexity

The state or quality of being intricate or complicated, often referring to systems, processes, or structures with multiple interacting components.

Risk

The potential for loss or an unfavorable outcome associated with an action or decision.