Biery Corporation Makes a Product with the Following Standard Costs

question 327

Multiple Choice

Biery Corporation makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for April is:

• A)$1,066 U
• B)$1,200 U
• C)$1,200 F
• D)$1,066 F

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Definitions:

Degradation

The process of breaking down or decomposing substances into simpler forms, as in the breakdown of proteins into amino acids.

Synaptic Cleft

A gap between two nerve cells where neurotransmitters are released from the presynaptic neuron to send signals to the postsynaptic neuron.

Enzymes

Biological molecules that significantly speed up the rate of virtually all of the chemical reactions that take place within cells.

Exocytosis

The process by which cells release substances (such as neurotransmitters and hormones) outside the cell by the fusion of a vesicle with the plasma membrane.