Kibodeaux Corporation Makes a Product with the Following Standard Costs

question 120

Multiple Choice

Kibodeaux Corporation makes a product with the following standard costs: The company budgeted for production of 3,300 units in June, but actual production was 3,400 units. The company used 33,240 liters of direct material and 320 direct labor-hours to produce this output. The company purchased 35,900 liters of the direct material at $4.90 per liter. The actual direct labor rate was $22.70 per hour and the actual variable overhead rate was $2.70 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)$392 U
• B)$392 F
• C)$400 F
• D)$400 U

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Definitions:

Pulmonary Veins

Blood vessels that carry oxygenated blood from the lungs to the left atrium of the heart.

Pulmonary Circuit

The route of blood flow from the heart to the lungs and back, during which blood becomes oxygen-rich.

Peripheral Resistance

The resistance of the arteries to blood flow. As the arteries constrict, the resistance increases and blood pressure rises.

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute, a crucial parameter for determining heart efficiency.