A Company Uses the Following Standard Costs to Produce a Single

question 108

Multiple Choice

A company uses the following standard costs to produce a single unit of output.
During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.
-Based on this information,the direct materials quantity variance for the month was:

• A)$1,800 favorable
• B)$5,800 unfavorable
• C)$5,800 favorable
• D)$1,800 unfavorable
• E)$1,000 favorable

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Definitions:

Complementary

Goods or services that are used together, where the increase in consumption of one results in an increase in the consumption of the other.

Price of Capital

The cost of accessing funds or resources for investment purposes, often influenced by interest rates, market demand, and availability of capital.

Occupations

The various types of jobs or professions individuals engage in to earn income.

Percentage Increases

The calculation of the rise in a quantity or value expressed as a percentage of its previous value.