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

---

Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of values, scores, or variables that are normally distributed.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Standard Deviation

A measure of dispersion in a set of values, indicating how much variation exists from the average.

Population Mean

The average of all values in a population, representing the central point of a data set.