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:

Simple Interest

Interest calculated only on the principal amount, without compounding over time.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.

Future Value

The value of an investment at a specific date in the future, accounting for factors like interest or dividends.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth or interest.