Landram Corporation Makes a Product with the Following Standard Costs

question 139

Multiple Choice

Landram Corporation makes a product with the following standard costs: In March the company produced 4,700 units using 10,230 kilos of the direct material and 2,210 direct labor-hours. During the month, the company purchased 10,800 kilos of the direct material at a cost of $76,680. The actual direct labor cost was $38,233 and the actual variable overhead cost was $11,934.

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 March is:

• A)$940 F
• B)$1,080 F
• C)$1,080 U
• D)$940 U

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, including thoughts, feelings, and behaviors.

Characteristic Thoughts

The habitual patterns or types of thinking that are typical of an individual's cognitive processes.

Habit

A repetitive behavior that an individual performs regularly, often without much conscious thought.

Pleasure Principle

In psychoanalytic theory, it is the driving force of the id that seeks immediate gratification of all desires, wants, and needs.