Mason, Inc

question 120

Multiple Choice

Mason, Inc. uses a standard costing system. Overhead costs are allocated based on direct labour hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labour hour, respectively. Data relevant for the current period include: Direct materials purchased 50,000 kg. @ $12 per kg.
Direct materials used 50,000 kg.
Standard quantity of direct materials
For actual production 45,000 kg.
Direct materials standard price $13 per kg.
Direct labour costs incurred 75,000 hours @ $12 per hour
Standard direct labour hours for
Actual production 78,000 hours
Standard direct labour cost per hour $11 per hour
Variable overhead costs incurred $77,070
Fixed overhead costs incurred $381,920
The direct materials efficiency variance is:

• A)$60,000 Favourable
• B)$60,000 Unfavourable
• C)$65,000 Favourable
• D)$65,000 Unfavourable

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Definitions:

Illness Behavior

The ways individuals react and respond to being ill, including seeking treatment, interpreting symptoms, and coping with the illness.

Sick-role Behavior

The pattern of expectations and behavior that a person adopts when ill, including seeking medical help and temporarily assuming a dependent and exempt status from normal duties.

Dependence

A condition characterized by the reliance on a substance, activity, or habit to the extent that its cessation causes severe trauma or withdrawal.

Chronic Illness

A long-lasting health condition that can be controlled but not cured, often requiring ongoing medical attention and management.