Imrie Corporation Makes a Product That Uses a Material with the Quantity

question 88

Multiple Choice

Imrie Corporation makes a product that uses a material with the quantity standard of 9.5 grams per unit of output and the price standard of $5.00 per gram. In January the company produced 2,900 units using 26,940 grams of the direct material. During the month the company purchased 28,900 grams of the direct material at $4.90 per gram. The direct materials purchases variance is computed when the materials are purchased.
-The materials quantity variance for January is:

• A)$2,989 F
• B)$3,050 F
• C)$2,989 U
• D)$3,050 U

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Definitions:

Unethical Process

Actions or procedures that go against moral principles and do not conform to ethical standards.

Inflate Profits

The act of artificially increasing a company's profit figures through deceptive or unethical accounting practices.

Moral Intensity

The degree to which an issue demands the application of ethical principles based on its potential impact.

Saliency

The quality of being particularly noticeable or important; standing out from the background or context.