Answer the Following Questions Using the Information Below

question 104

Multiple Choice

Answer the following questions using the information below:
Sawyer Industries, Inc. (SII) , developed standard costs for direct material and direct labor. In 2011, SII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.
During July, SII produced and sold 5,000 containers using 1,100 pounds of direct materials at an average cost per pound of $24 and 525 direct manufacturing labor hours at an average wage of $14.75 per hour.
-July's direct material flexible-budget variance is:

• A)$1,400 unfavorable
• B)$21,100 favorable
• C)$2,500 unfavorable
• D)None of these answers are correct.

Recognize the importance of responsibility reporting systems in organizational accountability and performance measurement.

Understand the concepts of national debt and budget deficits/surpluses.

Analyze the impact of fiscal policies on the economy, including during recessions and periods of full employment.

Explain the role and effects of automatic stabilizers in the economy.

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Definitions:

Efficient Level

The optimal point of operation where resources are used in such a way that maximizes productivity and minimizes waste.

Negative Externality

A cost that is suffered by a third party due to an economic transaction, where the cost is not reflected in the transaction's final price.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good, including both direct costs to the producer and external costs to others.

Efficient Output

The level of production at which a company or economy can produce the maximum amount of goods at the lowest cost.