Doogan Corporation Makes a Product with the Following Standard Costs

question 188

Multiple Choice

Doogan Corporation makes a product with the following standard costs:
The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 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 quantity variance for January is:

• A) $1,411 F
• B) $1,660 F
• C) $1,660 U
• D) $1,411 U

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Definitions:

Corporate Farms

Large-scale agricultural operations owned or operated by companies rather than individuals or families, often involved in intensive farming practices.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for human consumption and use.

Productive Sectors

Parts of the economy that are directly involved in producing goods and services, contributing to the economic output.

19th Century

The 19th Century denotes the period from January 1, 1801, through December 31, 1900, marked by significant industrial, cultural, and political changes globally.