The Cheers Company Makes Mugs for Which the Following Standards

question 10

Multiple Choice

The Cheers Company makes mugs for which the following standards have been developed: Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct material quantity variance for July?

• A)$200 Favorable
• B)$200 Unfavorable
• C)$220 Favorable
• D)$220 Unfavorable

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Definitions:

Department of Justice

A U.S. government's federal department tasked with law enforcement and the management of justice.

Mergers

The process by which two or more companies combine operations, often to increase competitiveness or to expand market share.

Glass-Steagall Act

A law enacted in 1933 to separate commercial banking from investment banking, aimed at reducing conflicts of interest and systemic risks.

Monopolies

Market structures characterized by a single seller dominating a particular market, possessing significant market power over the price and supply of a product or service.