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:

Projective

A type of psychological test in which the test-taker projects their personality, fears, desires, and internal conflicts onto ambiguous stimuli.

Objective

Unbiased and unemotional; based on facts rather than feelings or opinions.

Dynamic

Pertains to the quality of being energetic or forceful, often characterized by constant change, activity, or progress.

Projective Tests

Psychological assessments where subjects respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.