Bronze Brick Company Uses the Following Rule to Determine Whether

question 16

Essay

Bronze Brick Company uses the following rule to determine whether materials usage variances should be investigated:
A materials usage variance will be investigated when the variance is greater than either $5,000 or 12% of the standard cost.
During May, the company purchased and used 11,000 kg of concrete for $5 per kilogram. It was able to make 20,000 bricks. Its standard quantity of materials allowed is 0.50 kg of concrete per brick at a standard price of $6.50 per kilogram.
Required:
A. Determine Bronze's material usage variance and whether it is favourable or unfavourable.
B. Should the variance be investigated?

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Definitions:

Confirmation Anxiety

The apprehension or unease experienced when seeking to affirm or validate one's beliefs or decisions, often fearing contrary evidence.

Stereotype Threat

The anxiety or worry in individuals that their behavior or performance could confirm a negative stereotype about their group, potentially affecting their performance.

Uncertainty Avoidance

A cultural dimension that describes the extent to which people in a society are uncomfortable with ambiguity and uncertainty.

Self-concept Threat

A psychological state where an individual feels their identity or self-view is challenged or diminished by external factors.