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:

Acquisition-Date Fair Value

The value of an asset or liability at the time of acquisition, determined according to applicable accounting standards for fair value measurement.

Controlling Interest

Ownership of a sufficient portion of a company's stock to dictate policies and make management decisions, typically over fifty percent.

Noncontrolling Interest

A portion of the equity in a subsidiary not directly owned by the parent company, reflecting the minority shareholders' interest in the subsidiary.

Excess Amortization Expenses

Costs that are higher than expected for the amortization of intangible assets, sometimes indicating an overly aggressive depreciation of these assets.