The Cheeseman Company Makes Tables and the Following Standards Have

question 119

Multiple Choice

The Cheeseman Company makes tables and the following standards have been developed:
$\begin{array}{lll}&\text { Standard Inputs Expected }&\text { Standard Price }\\\text { Expected }&\text { For Each Unit of Output }&\text { Per Unit of Input }\\\hline\text { Direct Materials } & 10 \text { ounces } & \$4 \text { per ounce } \\\text { Direct Labor } & 3 \text { hours } & \$ 16 \text { per hour }\end{array}$
Production of 230 tables was expected in July,but 250 tables were actually completed.Direct materials purchased and used were 2,200 pounds at an actual price of $4.50 per pound.Direct labor cost for the month was $10,620,and the actual pay per hour was $18.00.What is the direct material price variance for July?

• A) $800 Favorable
• B) $800 Unfavorable
• C) $1,100 Favorable
• D) $1,100 Unfavorable

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Definitions:

Local Responsiveness

The ability of a company or organization to tailor its products, services, and operations to meet the specific needs of local markets.

Cost Advantage

The benefit or saving realized from lower production or operational expenses compared to competitors.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness of the world's economies, cultures, and populations.

Operations Strategy

A long-term, strategic plan for optimizing operations, resources, and supply chain management to achieve the business goals and objectives.