The Porter Company Has a Standard Cost System

question 34

Multiple Choice

The Porter Company has a standard cost system.In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000;the materials quantity variance was $1,875 Unfavorable;and the standard quantity of materials allowed for July production was 21,750 pounds.The materials price variance for July was:

• A)$2,725 F
• B)$2,725 U
• C)$3,250 F
• D)$3,250 U

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Definitions:

Business Activity

The aggregate economic actions carried out by companies, including production, sales, and services, influencing the overall economic health.

Index of Leading Indicators

A composite of economic variables that predicts future economic activity, aiding in economic forecasting.

Recessions

Periods of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Recoveries

denotes the periods following recessions during which economic activity starts to increase and recover towards previous levels.