Niven Company Has Developed the Following Standards for One of Its

question 77

Multiple Choice

Niven Company has developed the following standards for one of its products: The following activity occurred during the month of April:
$\begin{array}{ll}\text { Direct materials: } & 8 \mathrm{~kg} \times \$ 8.5 \text { per kilogram } \\\text { Direct labour: } & 3 \text { hours } \times \$ 13 \text { per hour }\end{array}$ The company records materials price variances at the time of purchase.What is the variable standard cost per unit for materials and labour?
$$\begin{array} { l l } \text { Materials purchased: } & 5,000 \mathrm {~kg} \text { costing } \$ 42,500 \\\text { Materials used: } & 3,600 \mathrm {~kg} \\\text { Units produced: } & 500 \text { units } \\\text { Direct labour: } & 1,150 \text { hours at } \$ 11.80 \text { per hour }\end{array}$$

• A)$38
• B)$74
• C)$84
• D)$98

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Definitions:

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Acquiring Knowledge

The process of learning or gaining information, skills, and understanding through experience, education, or observation.

Mental Processes

Cognitive activities that include thinking, understanding, learning, and remembering, which are part of the functions of the brain.

Free Will

The ability of individuals to make choices that are not predetermined by prior causes or divine intervention.