Gilder Corporation Makes a Product with the Following Standard Costs

question 159

Multiple Choice

Gilder Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. 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)$4, 410 F
• B)$4, 410 U
• C)$4, 180 U
• D)$4, 180 F

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Definitions:

Abbreviation

A shortened form of a word or phrase used to save space or time in written communication.

Numerator

The top number in a fraction that indicates how many parts of a whole are being considered.

Kilo-

A prefix in the metric system denoting a factor of one thousand.

Ounce

A unit of weight in the avoirdupois system, equal to 1/16 of a pound or approximately 28.35 grams.