The Geurtz Company Uses Standard Costing

question 34

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
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The standard material allowed to produce one unit of Roff was

• A)1 lb.
• B)4 lbs.
• C)3 lbs.
• D)2 lbs.

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Definitions:

Intervertebral Discs

Cartilaginous pads located between the vertebrae in the spine, acting as shock absorbers and allowing flexibility.

Fibrocartilage

A tough type of cartilage that contains fibrous bundles of collagen, found in areas such as the intervertebral disks and pubic symphysis.

Compact Bone

The dense, hard outer layer of bone that provides strength and support to the skeletal structure.

Osteons

The fundamental unit of compact bone, comprising a central canal surrounded by concentric layers of calcified matrix.