Kibodeaux Corporation Makes a Product with the Following Standard Costs

question 28

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 price variance for June is:

• A)$3,332 F
• B)$3,590 U
• C)$3,332 U
• D)$3,590 F

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Definitions:

Psychological Factors

Elements of a person's psychological make-up, such as emotions, attitudes, and mental health, that can affect physical well-being and behavior.

Biological

Pertaining to the science of life or living organisms, often used in reference to genetic or hereditary aspects of physical and mental health.

Sociocultural Factors

Aspects of society and culture that influence individual behaviors, attitudes, and mental health, including norms, values, and social practices.

Deviant Behavior

Actions or behaviors that violate societal norms or expectations, which can lead to social disapproval or sanctions.