Genent Industries,Inc

question 152

Multiple Choice

Genent Industries,Inc.(GII) ,developed standard costs for direct material and direct labor.In 2017,GII estimated the following standard costs for one of their major products,the 30-gallon heavy-duty plastic container.

During July,GII produced and sold 4,000 containers using 1,700 pounds of direct materials at an average cost per pound of $15 and 3,225 direct manufacturing labor hours at an average wage of $15.25 per hour.
The direct material price variance during July is ________.

• A)$20,000 unfavorable
• B)$8,500 favorable
• C)$8,500 unfavorable
• D)$2,000 unfavorable

Understand the use of different types of reasoning in clinical settings.

Recognize the importance of critical thinking in nursing practice.

Identify steps in the decision-making process in nursing.

Illustrate healthy skepticism and the questioning of policies in nursing.

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Definitions:

Overhead Cost

Indirect expenses related to the production of goods or services, such as rent, utilities, and salaries of management, that cannot be directly tied to a specific product.

Activity Cost Pools

Groupings of individual costs, driven by the same cost drivers, used in activity-based costing to allocate costs more precisely to products or services.

Departmental Overhead Rates

Calculated rates used to allocate overhead costs to specific departments or units within a business.

Machine Hours

A measure of the amount of time a machine is operated, used in assessing cost or efficiency in production.