Bender Corporation Produced 100 Units of Product AA -Refer to the Figure

question 7

Multiple Choice

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labour for the 100 units of Product AA are as follows:
$\begin{array}{lll}\text { Materials: }&&\text {Standard}&\text { Actual}\\\text { Standard: } & 200 \text { kilograms at } \$ 3.00 \text { per kilogram } & \$ 600 \\\text { Actual: } & 220 \text { kilograms at } \$ 2.85 \text { per kilogram }&&\$627\\\\\text { Direct labour: }\\\text {Standard:}&\text { 400 hours at }\$ 15.00 \text {per hour}& 6,000\\\text { Actual:}&\text { 368 hours at }\$ 16.50 \text { per hour}&&6,072 \end{array}$
-Refer to the figure.What is the material usage variance for Bender Corporation?

• A)$33 (F)
• B)$33 (U)
• C)$60 (F)
• D)$60 (U)

---

Definitions:

Minimize Adverse Selection

A strategy to reduce the likelihood of selecting undesirable alternatives or participants, often used in insurance and finance to prevent situations where the insurer or lender has less information than the applicant.

Screening

The process of evaluating or analyzing something for a specific purpose or quality.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable participants in transactions, often seen in insurance markets.

Health Insurance

An insurance policy that covers the cost of medical and surgical treatments for the policyholder.