The Vito Company Makes Tables for Which the Following Standards

question 129

Multiple Choice

The Vito Company makes tables for which the following standards have been developed: Production of 200 tables was expected in July,but 220 tables were actually completed.Direct materials purchased and used were 2,000 pounds at an actual price of $4.40 per pound.Direct labor cost for the month was $10,620,and the actual pay per hour was $18.00.What is the direct material quantity variance for July?

• A)$800 Favorable
• B)$800 Unfavorable
• C)$880 Favorable
• D)$880 Unfavorable

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Definitions:

Manufacturing Overhead

Factory-associated indirect expenses that arise during the manufacturing of a product.

Estimated Total

The projected summed amount or quantity determined through approximation or calculation at the outset of a project or for a specific period.

Unit Product Cost

The total cost associated with producing a single unit of a product, including direct materials, direct labor, and manufacturing overhead.

Total Job Cost

The sum of all costs directly attributed to a specific job, including materials, labor, and overhead.