Biery Corporation Makes a Product with the Following Standard Costs

question 157

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:

Aggression

Behavior intended to harm or intimidate others, which can be physical or verbal.

Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.

Observation

The process of closely monitoring or watching something or someone to gain information.

Bobo Doll

Refers to a classic experiment by Albert Bandura that demonstrated how children can learn aggressive behaviors through observation of adult models.