The Following Materials Standards Have Been Established for a Particular

question 36

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 quantity variance for the month?

• A) $6,550 unfavourable.
• B) $6,600 unfavourable.
• C) $15,982 unfavourable.
• D) $16,104 unfavourable.

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Definitions:

General And Administrative Expenses

Operating expenses not directly tied to production, including salaries of executives, office supplies, and utilities.

Misuse

Misuse means using something in an incorrect, inappropriate or unintended manner, especially in a way that can cause harm or waste.

Employer's Assets

Resources of value owned by an employer, including physical assets, financial assets, and intangible assets like goodwill.

Schedule

A plan for carrying out a process or procedure, giving lists of intended events and times.