Moreland Manufacturing Inc. US-Based Moreland Manufacturing Inc. Produces and Sells Stainless Steel Faucets

question 70

Multiple Choice

Moreland Manufacturing Inc.
US-based Moreland Manufacturing Inc. produces and sells stainless steel faucets. In the current year, the company had budgeted for the production and sale of 6000 faucets but, due to unexpected demand, 7000 faucets were actually produced and sold. Each faucet has a standard requiring 15 ounces of direct material at a cost of $.40 per ounce and 15 minutes of assembly time at a cost of $.20 per minute. Actual costs for the production of 7000 faucets were $41 359.50 for materials (106 050 ounces purchased and used @ $.39 per ounce) and $21 560 for labour (98 000 minutes @ $.22 per minute) .
-Moreland's direct labour efficiency variance is:

• A) $1600 U
• B) $1400 F
• C) $2100 U
• D) $2100 F

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Definitions:

Condense

To reduce something, such as a text or statement, to make it shorter, while retaining the essential information or to change the physical state of a substance from gas to liquid.

Precipitation

The process by which water in the form of rain, snow, sleet, or hail falls from the atmosphere to the Earth's surface.

Root Systems

The underground part of a plant that absorbs water and nutrients from the soil, anchors the plant, and stores food.

Mature Soil

Soil that has developed layers and characteristics through a long process of weathering and organic matter accumulation, capable of supporting plant life.