Min Company
Min Company Has Developed the Following Standards for One

question 150

Multiple Choice

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

• A) $10,000 U
• B) $10,000 F
• C) $50,000 U
• D) $50,000 F

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Definitions:

Common Stock Option Warrants

Financial instruments that give the holder the right to purchase a company's common stock at a specified price within a certain time period.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period, typically including income statement, balance sheet, and cash flow statement.

Stockholders' Equity Account

A financial statement that shows the ownership value held by the shareholders of a company, consisting of share capital plus retained earnings and less any treasury shares.