The Dexon Company Makes and Sells a Single Product Called

question 33

Multiple Choice

The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.
-To record the purchase of direct materials, the general ledger would include what entry to the Materials Price Variance Account?

• A) $1,500 credit
• B) $1,500 debit
• C) $6,000 credit
• D) $6,000 debit

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Definitions:

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events.

Sensorimotor

Pertaining to the initial developmental stage in Piaget's theory, where infants learn about the world primarily through sensory experiences and manipulating objects.

Formal Operational

The stage of cognitive development, according to Piaget, characterized by the ability to think abstractly, logically, and systematically.

Concrete Operational

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 7 and 11, where children gain the ability for logical thought regarding concrete objects.