Bread Company Has Developed the Following Standards for One of Its

question 22

Multiple Choice

Bread Company has developed the following standards for one of its products.
$\begin{array}{ll}\text { Direct materials: } & 10 \text { kilograms } \times \$ 3 \text { per kilogram } \\\text { Direct labour: } & 2.5 \text { hours } \times \$ 8 \text { per hour } \\\text { Variable manufacturing overhead: } & 2.5 \text { hours } \times \$ 2 \text { per hour }\end{array}$


$\begin{array}{ll}\text { The following activity occurred during the month of June }\\\text { Materials purchased: } & 125,000 \text { kilograms at } \$ 2.60 \text { per } \\& \text { kilogram } \\\text { Materials used: } & 110,000 \text { kilograms } \\\text { Units produced: } & 10,000 \text { units } \\\text { Direct labour: } & 24,000 \text { hours at } \$ 7.50 \text { per hour } \\\text { Actual variable manufacturing overhead: } & \$ 51,000\end{array}$ The company records materials price variances at the time of purchase.
-Refer to the figure.What is the variable manufacturing overhead efficiency variance?

• A)$1,000 favourable
• B)$1,000 unfavourable
• C)$2,000 favourable
• D)$3,000 unfavourable

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Definitions:

Data Collection

Data collection is the process of gathering and measuring information on variables of interest, systematically, enabling one to answer stated research questions.

Sampling Error

The discrepancy or error that arises when a sample statistic does not perfectly represent the corresponding population parameter, due to the selection of a random subset.

Sample Size

The number of individual observations or data points collected and included in a sample from a larger population.

Biased

Showing preference or prejudice for or against something or someone, often in a way considered to be unfair.