Eliezrie Corporation Makes a Product with the Following Standard Costs

question 324

Multiple Choice

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7,400 units but the actual production was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output. During the month, the company purchased 48,500 kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714. 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 quantity variance for January is:

• A)$3,487 F
• B)$3,170 U
• C)$3,170 F
• D)$3,487 U

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Definitions:

Fungi

A kingdom of spore-producing organisms that feed on organic matter, including molds, yeast, mushrooms, and toadstools.

Sexual Spores

Reproductive cells formed during the sexual life cycle of an organism, capable of developing into a new individual upon germination.

Ascocarp

The fruiting body of ascomycete fungi, where spore production occurs.

Asexual Spores

Reproductive cells produced without sexual fusion, capable of developing into a new organism.