A Company Uses the Following Standard Costs to Produce a Single

question 46

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 price variance for the month was:

• A)$6,000 unfavorable
• B)$1,800 favorable
• C)$1,000 favorable
• D)$5,800 unfavorable
• E)$1,800 unfavorable

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Definitions:

State Statutes

Laws that have been enacted by the legislative bodies of individual states.

Operating Agreement

A contract among the members of a Limited Liability Company (LLC) that outlines the business's financial and functional decisions including provisions for its governance and operation.

Buyout Price

The predetermined amount of money required to purchase all or a specified percentage of ownership in a company or asset.

Dissociation

The process by which a member's involvement in an entity or partnership is terminated, often involving the alteration of the entity's legal and financial relationships.