Min Company Has Developed the Following Standards for One of Its

question 44

Multiple Choice

Min Company has developed the following standards for one of its products. $\begin{array}{ll}\text { Direct materials: } & 15 \mathrm{~kg} \times \$ 17.50 \text { per kilogram } \\\text { Direct labour: } & 4 \text { hours } \times \$ 24 \text { per hour } \\\text { Variable manufacturing overhead: } & 4 \text { hours } \times \$ 14 \text { per hour }\end{array}$ The following activity occurred during the month of November: $$\begin{array} { l l } \text { Materials purchased: } & 20,000 \mathrm {~kg} \text { costing } \$ 340,000 \\\text { Materials used: } & 7,200 \mathrm {~kg} \\\text { Units produced: } & 500 \text { units } \\\text { Direct labour: } & 2,300 \text { hours at } \$ 23.60 \text { per hour }\end{array}$$ The company records materials price variances at the time of purchase.What is the direct materials price variance?

• A) $10,000 favourable
• B) $10,000 unfavourable
• C) $50,000 favourable
• D) $50,000 unfavourable

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Definitions:

DVI

A video interface technology designed to maximize the visual quality of digital display devices such as monitors and projectors.

VGA

Video Graphics Array, a standard for computer video display hardware resolution and color depth.

HDMI

High-Definition Multimedia Interface, a proprietary audio/video interface for transmitting uncompressed video data and compressed or uncompressed digital audio data from an HDMI-compliant source device.

USB Port

A Universal Serial Bus port that allows devices to be connected to a computer, facilitating data transfer and device charging.