) Saskatoon Company Uses Two Raw Materials, a and B

question 232

Multiple Choice

) Saskatoon Company uses two raw materials, A and B, in the manufacture of its only product: Zizbo. The materials are very close substitutes. The standard proportions for the manufacture of a unit of Zizbo are 2 units of A and 3 units of B. The unit standard prices of A and B are $10 and $8, respectively. During the month of August, the company used 450 units of A and 750 units of B to produce 230 units of Zizbo.
-Which one of the following variances is MOST controllable by a production supervisor?

• A) Materials price variance.
• B) Materials quantity variance.
• C) Fixed overhead volume variance.
• D) Variable overhead spending variance.

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Definitions:

Economic Growth

A rise in the quantity of goods and services produced in an economy during a specific timeframe, usually assessed by the percentage growth rate of the real gross domestic product (GDP).

Downcycling

refers to the recycling process in which materials are converted into products of lower quality or reduced functionality, unlike upcycling, which enhances the material's quality.

Source Separation

Source separation refers to the practice of separating different types of waste materials at their point of origin for more efficient recycling and waste management.

Sanitary Landfills

Engineered ground facilities designed for the safe disposal of waste where layers of soil and protective liners minimize leakage and odors to the surrounding areas.