Meow Products Ltd In the Current Year, 38 000 Feet of Material Were

question 69

Multiple Choice

Meow Products Ltd.
Meow Products Ltd. in the US produces and sells scratching posts for cats. In the current year, the company had expected to sell 12 000 posts but actually produced and sold 10 000 posts. The following information is available regarding the standard cost to produce a single post:
$\begin{array}{ll}\text { Direct materials: } & 3 \text { feet } @ 1.75 \text { per foot } \\\text { Direct labour: } & 15 \text { minutes } @ \$ .30 \text { per minute }\end{array}$
In the current year, 38 000 feet of material were purchased out of which 35 000 feet were used at a cost of $1.55 per foot, and 160 000 direct labour minutes were incurred at a cost of $.32 per minute.
-The company's direct materials usage variance for the current year was:

• A) $14 000 F
• B) $ 1750 F
• C) $ 3500 U
• D) $ 8750 U

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Definitions:

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby and removing waste products from the baby's blood.

Neural Tube

is an embryonic structure that eventually develops into the brain and spinal cord during prenatal development.

Spina Bifida

A neural tube defect that results in spinal nerves growing outside of the vertebrae, often resulting in paralysis and developmental disability.

Anencephaly

A neural tube defect that results in the failure of all or part of the brain to develop, resulting in death prior to or shortly after birth.