Galla Corporation Makes a Product with the Following Standard Costs

question 135

Multiple Choice

Galla Corporation makes a product with the following standard costs: The company budgeted for production of 2, 400 units in June, but actual production was 2, 500 units.The company used 19, 850 pounds of direct material and 980 direct labor-hours to produce this output.The company purchased 21, 700 pounds of the direct material at $6.70 per pound.The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 June is:

• A)$6, 150 F
• B)$6, 150 U
• C)$6, 510 F
• D)$6, 510 U

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Definitions:

Bodybuilders

Individuals who engage in strenuous exercise routines and nutrition plans to build muscle mass and physique.

Muscle Adapts

Refers to the physiological changes in muscle fibers in response to repeated stress or activities, leading to increases in strength, endurance, or size.

Increasing In Size

The process where an organism or object grows in dimension and volume.

Increasing In Weight

The process of gaining body weight, which can be due to muscle mass, fat, or fluid increases.