Bulluck Corporation Makes a Product with the Following Standard Costs

question 196

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 July is:

• A) $2,100 U
• B) $2,420 F
• C) $2,100 F
• D) $2,420 U

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Definitions:

Free Rider Effect

A situation where some individuals benefit from resources or services without contributing to the cost.

Proportional Share

An allocation method where resources, rewards, or responsibilities are distributed among parties based on a predefined ratio or proportion.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Illusion of Invulnerability

A cognitive bias that leads individuals or groups to underestimate risks, believing themselves immune to negative outcomes.