Chilé Products Ltd. US-Based Chilé Products Ltd. Bottles and Sells Hot Pepper Sauce

question 58

Multiple Choice

Chilé Products Ltd.
US-based Chilé Products Ltd. bottles and sells hot pepper sauce. In 2009, the company had expected to sell 60 000 bottles but actually bottled and sold 70 000 bottles. The standard direct materials cost for each bottle is $.28 comprised of .80 ounces at a cost of $.35 per ounce. During 2009, 68 000 ounces of material were purchased out of which 55 000 ounces were used at a cost of $.32 per ounce.
-The direct materials usage variance for 2009 was:

• A) $ 350 F
• B) $ 350 U
• C) $4200 F
• D) $4200 U

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Definitions:

West Indies

A region of the Caribbean comprising numerous islands, some of which were historically significant centers of the Atlantic slave trade.

Racial War

A conflict based on racial differences and hostilities, often involving systematic discrimination or violence against a particular racial group.

Prigg v. Pennsylvania

An 1842 Supreme Court case that held federal law superseded state law regarding fugitive slaves, undermining states' rights to enforce anti-slavery laws.

Atlantic Slave Trade

The forced transatlantic transportation of African slaves to the Americas from the 16th to the 19th centuries.