A Company Uses the Following Standard Costs to Produce a Single

question 80

Multiple Choice

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

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

Recognize the role of consumer confidence in economic activity.

Grasp the implications of economic recovery on employment and GDP.

Comprehend the concept and implications of status symbols in consumer behavior.

Analyze consumer behavior trends during economic recessions.

---

Definitions:

Members

Individuals who belong to a group, organization, or body, sharing common goals, interests, or characteristics.

Solidary Benefits

Rewards of group membership such as pleasure, status, or companionship that encourage people to join and participate in group activities.

Consciousness-Raising

Consciousness-Raising is a form of activism or movement seeking to make people more aware of personal, social, or political issues, often associated with the women's liberation movement of the 1960s and 1970s.

Friendship

A close and mutual relationship between two individuals that typically involves affection, trust, and support.