Compound C90N Is a Raw Material Used to Make Mosbarger

question 9

Multiple Choice

Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below: The raw material was purchased on account.
-The Materials Quantity Variance for September would be recorded as a:

• A) Debit of $382
• B) Credit of $11,078
• C) Credit of $382
• D) Debit of $11,078

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Definitions:

U-Shaped

Describing a type of graph or relationship where the values fall, then rise, forming a shape similar to the letter "U".

Short-Run Cost Function

The relationship between the total cost and output when at least one factor of production is fixed.

Quasi-Fixed Costs

Expenses that are fixed over a certain range of production or time but can change if production or the time period changes significantly.

Positive Output

The production of a quantity greater than zero, indicating active operation or production levels in a business or economy.