Bulluck Corporation Makes a Product with the Following Standard Costs

question 22

Multiple Choice

Bulluck Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in July.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The materials price variance for October is:

• A) $15,000 Unfavorable
• B) $15,000 Favorable
• C) $25,000 Unfavorable
• D) $25,000 Favorable

---

Definitions:

Greenhouse Effect

A natural process by which certain gases in the Earth's atmosphere trap heat, warming the planet and making it habitable, but which is exacerbated by human activities leading to climate change.

Environmental Issues

Problems related to the natural environment, including pollution, climate change, and biodiversity loss.

Environmental Costs

The negative impacts on the environment resulting from human activities, including pollution, resource depletion, and habitat destruction.

Market Costs

Expenses associated with buying, selling, and producing goods or services within a market economy.