A Company Uses the Following Standard Costs to Produce a Single

question 2

Multiple Choice

A company uses the following standard costs to produce a single unit of output. $$\begin{array} { l l l l } \text { Direct materals } & 6 \text { pourds at } \$ 0.90 \text { per pound } & = & \$ 5.40 \\\text { Direct labor } & 0.5 \text { hour at } \$ 12.00 \text { per hour } & = & \$ 6.00 \\\text { Marufacturing overhead } & 0.5 \text { hour at } \$ 4.80 \text { per hour } & = &\$ 2.40\end{array}$$ During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct materials price variance for the month was:

• A)$6,000 unfavorable
• B)$1,800 favorable
• C)$1,000 favorable
• D)$5,800 unfavorable
• E)$1,800 unfavorable

Understand and apply concepts of total costs in the short-run production process.

Calculate and interpret average variable costs.

Analyze the relationship between output levels and total variable costs.

Determine marginal costs from given production data.

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Definitions:

Mediates

To intervene between parties with the aim of resolving differences or to bring about a change through such an intervention.

Iceberg

Often used as a metaphor in psychology to describe the mind's structure: the conscious mind as the tip of the iceberg and the unconscious mind as the much larger part beneath the surface.

Freud

The founder of psychoanalysis, an Austrian neurologist known as Sigmund Freud, introduced a therapeutic method that involves dialogues between psychoanalysts and patients to treat psychopathology.

Mind's Structure

The organization of the mental aspects and processes of an individual, often conceptualized as having various parts like the id, ego, and superego in Freudian theory.