Cox Engineering Performs Cement Core Tests in Its Laboratory

question 7

Multiple Choice

Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March:

• 8,600 pounds of sand were purchased at a cost of $7,310.
• 7,200 pounds of sand were used for core tests.
• 840 actual direct labor-hours were worked at a cost of $8,610.
• Actual variable manufacturing overhead incurred was $3,200.

-The materials price variance for March is:

• A)$860 unfavorable
• B)$860 favorable
• C)$281 unfavorable
• D)$281 favorable

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Definitions:

Mistake of Law

An error made by a person about the legal implications of their actions or the legal requirements of a situation.

Rectification

The legal process of correcting a mistake in a contract or legal document so that it accurately reflects the intentions of the parties involved.

Person's Judgment

The capacity or ability of an individual to make considered decisions or come to sensible conclusions.