The Albright Company Uses Standard Costing and Has Established the Following

question 47

Multiple Choice

The Albright Company uses standard costing and has established the following standards $f$ its single product:
$\begin{array}{|l|r|}\hline \text { Direct Materials } & 2 \text { litres at \$3 per litre } \\\hline \text { Direct Labour } & 0.5 \text { hours at \$8 per hour } \\\hline \text { Variable Manufacturing Overhead } & 0.5 \text { hours at \$2 per hour } \\\hline\end{array}$
During November, the company made 4,000 units and incurred the following costs:
$\begin{array}{|l|r|}\hline \text { Direct Materials Purchased } & 8,100 \text { litres at } \$ 3.10 \text { per litre } \\\hline \text { Direct Materials Used } & 7,600 \text { litres } \\\hline \text { Direct Labour Used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual Variable Manufacturing Overhead } & \$ 4,175 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-What was the materials price variance for November?

• A) $810 favourable.
• B) $810 unfavourable.
• C) $2,310 favourable.
• D) $2,310 unfavourable.

Clarify the role of government in investment in different economic systems.

Distinguish between the concepts of marginal propensity to consume (MPC) and marginal propensity to save (MPS).

Understand the accounting and journal entry process for purchasing equity and debt investments.

Analyze the effects of dividends received and interest accrued on investments for financial reporting.

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