Biery Corporation Makes a Product with the Following Standard Costs

question 35

Multiple Choice

Biery Corporation makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours.During the month,the company purchased 6,000 liters of the direct material at $5.80 per liter.The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour. 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 April is:

• A)$1,066 U
• B)$1,200 U
• C)$1,200 F
• D)$1,066 F

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Definitions:

Template-Matching Theory

An approach to pattern recognition that posits the mind matches stimuli to templates or patterns in the brain to recognize and identify them.

Template Matching

A method in pattern recognition where a predefined template or shape is compared to potential matches within a larger set or scene.

Word Superiority Effect

The phenomenon in which words are easier to recognize and process in isolation than letters alone or letters in non-words.

Bottom-Up Processes

Cognitive processing that starts with the sensory input and builds up to the formation of concepts and perceptions.