The Dexon Company Makes and Sells a Single Product, Called

question 76

Multiple Choice

The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: $\begin{array}{|l|r|r|}\hline & \text { Standard Quantity or Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct Materials } & 6 \text { board metre } & \$ 9.00 \\\hline \text { Direct Labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $\$ 24,000$ .
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $\$ 20,060$ .
- To record the use of direct materials in production,the general ledger would include what entry to the Materials Quantity Variance account?

• A) $900 debit.
• B) $900 credit.
• C) $3,600 debit.
• D) $3,600 credit.

---

Definitions:

Genus

The broad classification under which species are grouped based on shared features or ancestry, emphasizing a different aspect.

Differentia

The trait or set of traits that distinguish one species from another within a genus or one entity or concept from another within a classification.

Type

A category or class of things that share common characteristics or attributes.

Referents

Objects or concepts in the world to which words, phrases, or symbols refer or denote in language and thought.