The Litton Company Has Established Standards as Follows

question 90

Multiple Choice

The Litton Company has established standards as follows:

Direct material: 3 pounds per unit $4 per pound = $12 per unit
Direct labor: 2 hours per unit $8 per hour = $16 per unit
Variable manufacturing overhead: 2 hours per unit $5 per hour = $10 per unit

Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours.
-The materials quantity variance is:

• A)$800 U
• B)$4,000 U
• C)$760 U
• D)$760 F

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Definitions:

Groin

The area where the abdomen ends and the legs begin, often referring to the fold or crease between the thigh and abdomen.

Anterior Knee

The front part of the knee, including structures such as the patella and the quadriceps tendon.

Serous Membrane

A thin membrane lining certain internal cavities of the body, producing a lubricating fluid to reduce friction between organs.

Pericardium

A double-layered membrane surrounding the heart, protecting it and anchoring it to the surrounding walls.