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:

Enculturation

The gradual acquisition of the characteristics and norms of a culture or group by a person, another culture, etc.

Spatial Orientation

The ability to recognize one's position in space relative to the environment, involving the understanding of directions, distances, and locations.

Self-evaluation

The process of introspectively assessing one's own abilities, performance, or qualities to facilitate personal development or improvement.

Person

An individual human being.