Eliezrie Corporation Makes a Product with the Following Standard Costs

question 71

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 quantity variance for January is:

• A)$3, 487 F
• B)$3, 170 U
• C)$3, 170 F
• D)$3, 487 U

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Definitions:

Operational Decision

Decisions made to manage day-to-day activities of an organization, affecting its efficiency and effectiveness.

Supply Chain

The network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Transportation

Refers to the movement of goods or people from one location to another, typically involving vehicles such as trucks, ships, and planes.

Dabbawalas

A lunchbox delivery and return system in Mumbai, India, known for its low cost and high reliability.