) Saskatoon Company Uses Two Raw Materials, a and B

question 138

Multiple Choice

) Saskatoon Company uses two raw materials, A and B, in the manufacture of its only product: Zizbo. The materials are very close substitutes. The standard proportions for the manufacture of a unit of Zizbo are 2 units of A and 3 units of B. The unit standard prices of A and B are $10 and $8, respectively. During the month of August, the company used 450 units of A and 750 units of B to produce 230 units of Zizbo.
-What were the direct materials quantity variances for raw materials A and B,respectively?

• A) $100 favourable and $480 unfavourable.
• B) $200 unfavourable and $240 unfavourable.
• C) $300 favourable and $240 unfavourable.
• D) $480 unfavourable and $100 favourable.

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Definitions:

Months

Divisions of the year, typically consisting of four weeks, used to measure time in calendar systems.

HRM Effectiveness

The efficiency and performance of human resource management in meeting the organization's goals and employee satisfaction.

Maturity

Maturity in a business context refers to the stage at which an organization or process has reached its maximum potential or development, often characterized by a period of stability and high performance.

Customer Satisfaction

The measure of how products or services provided by a company meet or surpass customer expectation.