Frogue Corporation Uses a Standard Cost System Refer to the Information Provided for Frogue Company

question 14

Multiple Choice

Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended: $\begin{array}{ll}\$ 2.50 & \text { Actual price per kilogram } \\31,000 & \text { Actual lilograms of material used } \\\$ 18.10 & \text { Actual hourly labor rate } \\4.900 \text { lahor hrs } & \text { Actual hmurs of morhuction }\\\$ 2.80 & \text { Standard price per kilogram } \\6 \text { kilograms } & \text { Standard kilograms per completed urit } \\\$ 18.00 & \text { Standard hourly labor rate } \\1 \text { hr. } & \text { Standard time per completed urit } \\\$ 34,900 & \text { Actual total factory overhead }\\\$ 18,000 & \text { Actual fixed factory overhead } \\\$ 1.20 \text { per labor hour } & \text { Standard fixed factory overhead rate } \\\$ 3.80 \text { per labor hour } & \text { Standard variable factory overhead rat } \\15,000 \text { hours } & \text { Maximum plant capacity } \\5,000 & \text { Units completed churing the period }\end{array}$
Refer to the information provided for Frogue Company. The direct materials cost variance is:

• A) $6,500 unfavorable.
• B) $9,000 unfavorable.
• C) $9,000 favorable.
• D) $6,500 favorable.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the values differ from the mean of the set.

Mean

The arithmetic average of a data set, obtained by adding all the numbers and dividing by the count of numbers.

Normal Random Variable

A variable whose occurrences are distributed according to the normal distribution.

Percentile

A value on a scale of 100 that indicates the percentage of a distribution that is equal to or below it.