Landram Corporation Makes a Product with the Following Standard Costs

question 119

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 quantity variance for March is:

• A)$5,810 F
• B)$5,893 U
• C)$5,893 F
• D)$5,810 U

---

Definitions:

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles, and conveys sensory and motor information to and from the central nervous system.

Cognitive Appraisal

A mental process through which people evaluate the significance and meaning of events and situations for their well-being.

Richard Lazarus

A psychologist known for his research on stress and emotion, particularly for developing the appraisal theory of stress.

Robert Zajonc

A psychologist known for his theories on the interplay between emotions and cognitive processes.