Galla Corporation Makes a Product with the Following Standard Costs

question 414

Multiple Choice

Galla Corporation makes a product with the following standard costs: The company budgeted for production of 2,400 units in June,but actual production was 2,500 units.The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output.The company purchased 21,700 pounds of the direct material at $6.70 per pound.The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 quantity variance for June is:

• A)$4,550 U
• B)$4,355 F
• C)$4,550 F
• D)$4,355 U

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Definitions:

Sodium Chloride

A chemical compound, also known as table salt, used mainly in the food industry as a flavor enhancer and preservative, as well as in medical treatments.

Fluid Therapy

The medical practice of replenishing bodily fluids and electrolytes via oral or intravenous route to treat dehydration or electrolyte imbalances.

Traumatic Brain Injury

A form of acquired brain injury occurring when a sudden trauma causes damage to the brain.

Lactated Ringer's

An intravenous solution used for fluid and electrolyte replenishment in patients, contains sodium chloride, sodium lactate, potassium chloride, and calcium chloride.