Mystic Falls Inc

question 64

Multiple Choice

Mystic Falls Inc. Mystic Falls Inc. bottles and sells a popular soft drink. In 2011, the company had expected to sell 1,000,000 bottles but actually bottled and sold 900,000 bottles. The standard direct materials cost for each bottle is $.40 comprised of 10 ounces at a cost of $.04 per ounce. During 2011, 10,000,000 ounces of material were purchased out of which 9,200,000 ounces were used at a cost of $.05 per ounce.
Refer to the Mystic Falls Inc. information above. The direct materials price variance for 2011 was:

• A) $ 92,000 U.
• B) $ 92,000 F.
• C) $100,000 U.
• D) $100,000 F.

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Definitions:

Ethics

Principles that govern a person's behavior or the conducting of an activity, often acting as a guideline for moral conduct.