Seaside Company Produces Picture Frames

question 132

Multiple Choice

Seaside Company produces picture frames.During the year 190,000 picture frames were produced.Materials and labor standards for producing the picture frames are as follows: ​
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Seaside purchased and used 400,000 pieces of wood at $2.00 each and its actual labor hours were 360,000 hours at a wage rate of $10.50.
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What is the materials price variance?

• A) $100,000 F
• B) $112,500 U
• C) $135,000 F
• D) $170,000 U

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Definitions:

Normal Good

A good for which demand increases as consumer income rises, and decreases as consumer income falls.

Income Elasticity

A rephrased definition: The responsiveness of demand for an item to changes in the income of the people demanding the item.

Inferior Good

A good or service whose consumption declines as income rises, prices held constant.

Positive

Characterized by or denoting an effect, result, or attribute that is beneficial or conducive to growth or well-being.