Gentile Corporation Makes a Product with the Following Standard Costs

question 169

Multiple Choice

Gentile Corporation makes a product with the following standard costs: The company produced 6,000 units in May using 36,970 kilos of direct material and 4,340 direct labor-hours. During the month, the company purchased 40,400 kilos of the direct material at $4.70 per kilo. The actual direct labor rate was $13.70 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 May is:

• A)$11,880 U
• B)$11,880 F
• C)$12,120 F
• D)$12,120 U

---

Definitions:

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia, characterized by their ability to move voluntarily.

Osmole

The number of solute particles (molecules or ions) produced when a mole of solute diss

Solute

A dissolved substance. Compare with solvent.

Particles

Small localized objects to which can be ascribed several physical or chemical properties such as volume or mass.