Tower Company Planned to Produce 3,000 Units of Its Single

question 107

Multiple Choice

Tower Company planned to produce 3,000 units of its single product,Titactium,during November.The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound.Actual production in November was 3,100 units of Titactium.There was an unfavorable materials price variance of $380 and a favorable materials quantity variance of $120.Based on these variances,one could conclude that:

• A)more materials were purchased than were used.
• B)more materials were used than were purchased.
• C)the actual cost per pound for materials was less than the standard cost per pound.
• D)the actual usage of materials was less than the standard allowed.

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Definitions:

Duress

Compulsion by threat or force, often used in legal contexts where a person's action is excused because it was performed under coercion.

Coercion

Coercion refers to the practice of persuading someone to do something by using force or threats.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed to be enforceable.

Prenuptial Agreements

Legal contracts entered into before marriage detailing the division of assets and financial arrangements in the event of a divorce or death of one spouse.