The Geurtz Company Uses Standard Costing

question 41

Multiple Choice

The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:
Actual cost of direct material purchased and used: £65,560
Material price variance: £5,960 unfavourable
Total materials variance: £22,360 unfavourable
Standard cost per pound of material: £4
Standard cost per direct labour hour: £5
Actual direct labour hours: 6,500 hours
Labour efficiency variance: £3,500 favourable
Standard number of direct labour hours per unit of Roff: 2 hours
Total labour variance: £400 unfavourable
-The total number of units of Roff produced during August was

• A)10,800.
• B)14,400.
• C)3,600.
• D)6,500.

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Definitions:

Talcott Parsons

An American sociologist known for developing several theories on society, social action, and systems, most notably his action theory and system theory.

Karl Marx

A German philosopher, economist, and revolutionary socialist known for his critique of capitalism and contribution to the development of Marxist theory.

Max Weber

Max Weber was a German sociologist, philosopher, and political economist, whose ideas influenced social theory, social research, and the discipline of sociology itself.

Power Elite

A small group of people who hold disproportionate amounts of power in society, often through wealth, political influence, or military control.