Throop Company's Standards Call for One Kilogram of Materials for Each

question 22

Multiple Choice

Throop Company's standards call for one kilogram of materials for each unit of output at a cost of £2 per kilogram for the raw materials. Actual output was 50,000 units of product requiring 45,000 kilograms of raw materials at a cost of £2.10 per kilogram. There were no beginning or ending inventories of raw materials. The direct material price variance and quantity variance were:
$\begin{array}{ll}&&&&\text { Price } &&&&&& \text { Quantity } \\\end{array}$
A. $\begin{array}{ll}\text { £ 4,500 unfavourable } & £ 10,000 \text { favourable } \\\end{array}$
B. $\begin{array}{ll}\text { £ 5,000 favourable } && £ 10,500 \text { unfavourable } \\\end{array}$
C. $\begin{array}{ll}\text { £ 5,000 unfavourable } & £ 10,500 \text {favourable } \\\end{array}$
D. $\begin{array}{ll}\text { £10,000 favourable } && £ 4,500 \text { unfavourable }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Debit Card

A plastic card that deducts money directly from a cardholder's checking account to pay for a purchase.

Pays By Check

The act of making a payment for goods or services with a written and signed paper directing a bank to pay money from the payer's account.

Compliment

An expression of praise, commendation, or admiration.

Maintenance Skills

These are the abilities required to repair, care for, and keep machinery, buildings, or equipment in good condition.