Bryan Company Employs a Standard Cost System in Which Direct

question 50

Multiple Choice

Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:
$\begin{array} { | l | r | r | r | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct Materials } & 6 \text { kilograms } & \$ 3.50 / \text { kilogram } & \$ 21.00 \\\hline \text { Direct Labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & \$ 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$ During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours.



-What was the direct materials quantity variance for March?

• A) $3,500 favourable.
• B) $3,500 unfavourable.
• C) $52,500 favourable.
• D) $52,500 unfavourable.

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Definitions:

Transformational Coping

A way of managing stressful events by changing them into less subjectively stressful events.

Counterdependence

An unhealthy, insecure pattern of behavior that leads to separation in relationships with other people.

Overdependence

An unhealthy, insecure pattern of behavior that leads to preoccupied attempts to achieve security through relationships.

Regressive Coping

Coping mechanisms or strategies that involve retreating to less mature behaviors when faced with stress or adversity.