Epley Corporation Makes a Product with the Following Standard Costs

question 226

Multiple Choice

Epley Corporation makes a product with the following standard costs: In July the company produced 3,300 units using 12,240 pounds of the direct material and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the actual variable overhead cost was $20,148. 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 July is:

• A)$3,465 U
• B)$3,900 F
• C)$3,465 F
• D)$3,900 U

---

Definitions:

Asset Classes

Categories of investments that exhibit similar characteristics, behaviors on the market, and are subject to the same laws and regulations.

Past Performance

Indicates the historical financial results or operational achievements of a company, used as an indicator of potential future results.

Future Returns

The projected earnings or losses on an investment over an upcoming period.

Efficient Markets Hypothesis

A theory that asserts that financial markets are "informationally efficient", meaning that prices of securities fully reflect all available information at any point in time.