Mystic Falls Inc. Mystic Falls Inc. Bottles and Sells a Popular Soft Drink

question 57

Multiple Choice

Mystic Falls Inc.
Mystic Falls Inc. bottles and sells a popular soft drink. In 2009, the company had expected to sell 1 000 000 bottles but actually bottled and sold 900 000 bottles. The standard direct materials cost for each bottle is $.40 comprised of 10 grams at a cost of $.04 per gram. During 2009, 10 000 000 grams of material were purchased out of which 9 200 000 grams were used at a cost of $.05 per gram.
-The direct materials usage variance for 2009 was:

• A) $ 8000 U
• B) $ 8000 F
• C) $40 000 U
• D) $40 000 F

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Definitions:

Power

The ability or capacity to do something or act in a particular way; often related to the control or influence over others.

Essential Attributes

Fundamental qualities or characteristics that define the nature of something, without which it would not be recognized as itself.

Genus

A category of biological classification that ranks above species and below family, grouping together species that are structurally similar or phylogenetically related.

Lump

To group together indiscriminately or to consider as part of a single category without recognizing individual differences.