The Alpha Company Produces Toys for National Distribution

question 66

Multiple Choice

The Alpha Company produces toys for national distribution. Standards for a particular toy are:

Materials: 12 grams per unit at 56?per gram.
Labour: 2 hours per unit at $2.75 per hour.

During the month of December, the company produced 1,000 units. Information for the month follows:

Materials: 14,000 grams were purchased and used at a total cost of $7,140.
Labour: 2,500 hours worked at a total cost of $8,000.


-What was the materials price variance?

• A) $420 favourable.
• B) $420 unfavourable.
• C) $700 favourable.
• D) $700 unfavourable.

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Definitions:

Testes

The male reproductive glands that produce sperm and testosterone.

Spermatic Cord

A bundle of fibers and tissues forming a cord-like structure that runs through the abdominal region to the testes.

Seminiferous Tubules

Narrow, coiled tubules within the testes where spermatogenesis occurs, producing sperm.

Cremaster Muscles

Muscles that cover the testes, involved in the reflex action of moving the testes closer to the body in cold temperatures or during arousal.