Paw-Paw Products Paw-Paw Products Produces and Sells Flannel Covered Dogbeds

question 86

Multiple Choice

Paw-Paw Products Paw-Paw Products produces and sells flannel covered dogbeds. In the current year, Paw-Paw had expected to sell 8,000 beds but actually produced and sold 8,500 beds. The following information is available regarding the standard cost to produce a single dogbed:
In the current year, 44,000 yards of material were purchased and used at a cost of $1.60 per yard and 365,500 direct labor minutes were incurred at a cost of $.23 per minute.
Refer to the Paw-Paw Products information above. The company's direct material usage variance for the current year is:

• A) $3,750 U.
• B) $2,250 U.
• C) $6,000 U.
• D) $6,650 U.

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Definitions:

Predict

To declare or indicate in advance; especially to infer future events or outcomes based on current or past information.

Explain

To clarify something by explaining or providing information about it.

Describe

To give a detailed account in words of someone or something, including all the relevant characteristics, qualities, or events.

Control

In experiments, a standard against which the effect of a variable is compared or the ability to direct and manage outcomes or influences.