The Following Materials Standards Have Been Established for a Particular

question 127

Multiple Choice

The following materials standards have been established for a particular product:
$\begin{array}{|l|r|}\hline \text { Standard quantity per unit of output } & 4.4 \text { kilograms } \\\hline \text { Standard price } & \$ 13.20 \text { per kilogram } \\\hline\end{array}$
The following data pertain to operations concerning the product for the last month:
$\begin{array}{|l|r|}\hline \text { Actual materials purchased } & 4,800 \text { kilograms } \\\hline \text { Actual cost of materials purchased } & \$ 62,880 \\\hline \text { Actual materials used in production } & 4,300 \text { kilograms } \\\hline \text { Actual output } & 70 \text { units } \\\hline\end{array}$
-What was the materials price variance for the month?

• A) $430 favourable.
• B) $430 unfavourable.
• C) $480 favourable.
• D) $480 unfavourable.

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Definitions:

Peristaltic Contractions

Wave-like muscle contractions that occur in tubular structures of the body, such as the gastrointestinal tract, to move contents along.

Proteolytic Enzyme

An enzyme that breaks down proteins into smaller peptides or amino acids.

Chymotrypsin

Proteolytic enzyme formed in the small intestine from the pancreatic precursor chymotrypsinogen.

Ribonuclease

Enzyme that splits RNA into its component nucleotides.