Eliezrie Corporation Makes a Product with the Following Standard Costs

question 165

Multiple Choice

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7, 400 units but the actual production was 7, 500 units.The company used 45, 580 kilos of the direct material and 2, 030 direct labor-hours to produce this output.During the month, the company purchased 48, 500 kilos of the direct material at a cost of $53, 350.The actual direct labor cost was $18, 473 and the actual variable overhead cost was $7, 714. 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 January is:

• A)$4, 875 F
• B)$4, 875 U
• C)$4, 850 U
• D)$4, 850 F

---

Definitions:

Healthy Conflict

Constructive disagreements that are managed and resolved in a way that benefits the team or organization, fostering innovation and problem solving.

Kathleen Eisenhardt

An American strategy and organization theorist known for her work on strategic decision making and fast-paced industries.

Consensus

Consensus involves an agreement or a general acceptance among a group of people, typically reached after discussion and often used in decision-making processes.

Incubators

Organizations designed to accelerate the growth and success of startup and early-stage companies by providing entrepreneurs with resources and services such as physical space, capital, coaching, common services, and networking connections.