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

question 35

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 labour rate variance for the current year was:

• A) $ 200 F
• B) $ 200 U
• C) $3200 F
• D) $3200 U

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Definitions:

Hypotheses Testing

A method of statistical inference used to decide whether there is enough evidence to reject a null hypothesis in favor of an alternative hypothesis.

Power of the Test

The probability of correctly rejecting a false null hypothesis in a statistical test.

Random Sample

A selection of individuals or items from a larger population or set in such a way that each has an equal chance of being included, ensuring the sample's representativeness of the whole.

Normal Population

A population with a data distribution that follows a normal curve, characterized by the bell shape.