A Company Uses the Following Standard Costs to Produce a Single

question 45

Multiple Choice

A company uses the following standard costs to produce a single unit of output. During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct materials price variance for the month was:

• A) $6,000 unfavorable
• B) $1,800 favorable
• C) $1,000 favorable
• D) $5,800 unfavorable
• E) $1,800 unfavorable

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Definitions:

Anaerobic Respiration

A form of respiration that occurs in the absence of oxygen, where energy is produced by the breakdown of glucose through processes such as fermentation.

Lactate

Lactate is a compound produced when glucose is broken down and oxidized under anaerobic conditions, playing a significant role in energy production during intense exercise.

Pyruvate

A key intermediate in several metabolic pathways, especially glycolysis, where glucose is broken down to produce energy.

Cellular Respiration

The process by which cells convert glucose and oxygen into energy, carbon dioxide, and water.