Cibolo Company
Cibolo Company Has the Following Information Available for March

question 170

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 quantity variance?

• A)$ 510 F
• B)$ 525 U
• C)$ 525 F
• D)$3,675 U

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Definitions:

Product-level Activity

Product-level activity refers to tasks or operations directly associated with a specific product, impacting its cost and production process.

Facility-level Activity

Activities and costs associated with maintaining the physical structure and overall operations of a facility, not directly tied to specific products.

Plantwide Overhead Rate

A single overhead rate calculated by dividing the total manufacturing overhead costs by the total amount of a common base (like direct labor hours or machine hours) used across an entire plant.

Activity-based Costing

A costing methodology that assigns production costs to products or services based on the activities and resources that go into their creation.