Colortrigon Company Produces Picture Frames

question 195

Multiple Choice

Colortrigon Company produces picture frames.During the year, 200,000 picture frames were produced.Materials and labor standards for producing the picture frames are as follows: ​
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Colortrigon purchased and used 300,000 pieces of wood at $2.00 each, and its actual labor hours were 350,000 hours at a wage rate of $11.
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What is the materials usage variance?

• A) $112,500 F
• B) $112,500 U
• C) $200,000 U
• D) $200,000 F

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Definitions:

Setup Time

The amount of time required to prepare equipment, machinery, or systems for operation or production.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, typically calculated as the value-added time as a proportion of the total throughput time.

Value-Added Time

The duration during which a product or service is being modified or enhanced to increase its value to the customer.

Throughput Time

The elapsed time from when production is started until finished goods are shipped.