The Albright Company Uses Standard Costing and Has Established the Following

question 149

Multiple Choice

The Albright Company uses standard costing and has established the following standards $f$ its single product:
$\begin{array}{|l|r|}\hline \text { Direct Materials } & 2 \text { litres at \$3 per litre } \\\hline \text { Direct Labour } & 0.5 \text { hours at \$8 per hour } \\\hline \text { Variable Manufacturing Overhead } & 0.5 \text { hours at \$2 per hour } \\\hline\end{array}$
During November, the company made 4,000 units and incurred the following costs:
$\begin{array}{|l|r|}\hline \text { Direct Materials Purchased } & 8,100 \text { litres at } \$ 3.10 \text { per litre } \\\hline \text { Direct Materials Used } & 7,600 \text { litres } \\\hline \text { Direct Labour Used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual Variable Manufacturing Overhead } & \$ 4,175 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-What was the materials quantity variance for November?

• A) $300 unfavourable.
• B) $1,200 favourable.
• C) $1,200 unfavourable.
• D) $1,500 favourable.

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Definitions:

External Locus

A belief that one's life outcomes are the result of external forces or luck rather than one's own actions.

Catastrophic Stress

Extreme stress that can occur from witnessing or experiencing a disastrous event, leading to significant psychological trauma.

Post-traumatic Stress Disorder (PTSD)

Post-traumatic Stress Disorder (PTSD) is a psychiatric disorder that can occur in people who have experienced or witnessed traumatic events, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.

Eustress

Positive stress that motivates individuals and enhances their performance.