The Fantasy Gifts Company,a Maker of Holiday Novelties,needs Your Help

question 105

Multiple Choice

The Fantasy Gifts Company,a maker of Holiday novelties,needs your help immediately.The company's accountant resigned without leaving adequate records or explanations for what she did.In reviewing the records,you find the following information for May:
$$\begin{array} { | l | r | } \hline \text { Materials Purchased } & 20,000 \text { units } \\\hline \text { Materials Used } & 15,000 \text { units } \\\hline\end{array}$$
You find a copy of the budget which shows that materials were budgeted at $0.60/unit.You know that the materials price variance is recorded at the time of purchase and you find some handwritten notes among the accountant's work papers,which indicate the following:

$$\begin{array} { | l | c | } \hline \text { Materials price variance } & \$ 200 \mathrm {~F} \\\hline \text { Materials efficiency (quantity) variance } & \$ 600 \mathrm {~F} \\\hline\end{array}$$ What was the total actual cost of the direct materials purchased during May?

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Definitions:

Stanton

Elizabeth Cady Stanton was a leading figure of the early women's rights movement in the United States, best known for her role in organizing the 1848 Seneca Falls Convention.

Andrew Johnson

Andrew Johnson was the 17th President of the United States, serving from 1865 to 1869; he assumed presidency after the assassination of Abraham Lincoln and was the first president to be impeached.

First Reconstruction Act

Legislation passed in 1867 that began the period of Reconstruction in the United States, dividing the South into military districts and requiring states to ratify the 14th Amendment and provide suffrage to black males.

Southern State Governments

The executive, legislative, and judicial branches that govern the states located in the Southern region of the United States.