A Company Uses the Following Standard Costs to Produce a Single

question 40

Multiple Choice

A company uses the following standard costs to produce a single unit of output. $$\begin{array} { l l l } \text { Direct materials } & 6 \text { pounds at } \$ 0.90 \text { per pound } & = \$ 5.40 \\\text { Direct labor } & 0.5 \text { hour at } \$ 12.00 \text { per hour } & = \$ 6.00 \\\text { Marnfacturing overhead } & 0.5 \text { hour at } \$ 4.80 \text { per hour } & = \$ 2.40\end{array}$$ 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

---

Definitions:

Human Chorionic Gonadotropin

A hormone produced during pregnancy by the placenta, often measured in pregnancy tests.

Assistive Reproductive Technology

A range of medical techniques used to aid in the conception of a child, including in vitro fertilization (IVF), artificial insemination, and egg or sperm donation.

Fecundability

The probability of achieving a pregnancy within one menstrual cycle, often considered as a measure of fertility.

In Vitro Fertilization

A medical procedure whereby an egg is fertilized by sperm outside the body, with the resulting embryo transferred to the uterus for pregnancy.