Miguez Corporation Makes a Product with the Following Standard Costs

question 118

Multiple Choice

Miguez Corporation makes a product with the following standard costs:
The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour.
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 September is:

• A) $1,150 U
• B) $1,150 F
• C) $1,160 F
• D) $1,160 U

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Definitions:

Function Block

Rectangular block with inputs entering from the left and outputs exiting on the right.

Structure Text

A high-level programming language used in PLC and other control systems, designed for complex algorithm implementation.

Scheduling Mechanism

A system or method used to plan and organize tasks or processes to be carried out at specific times or under certain conditions.

Logic

The systematic study of the principles of valid inference and correct reasoning, often applied in computing to describe the foundational binary decision-making process.