Jackson Industries Uses a Standard Cost System in Which Direct

question 32

Multiple Choice

Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product.

During May, Jackson purchased 125,000 pounds of direct material at a total cost of $475,000. The total factory wages for May were $364,000, 90 percent of which were for direct labor. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct material and 28,000 direct labor-hours.
-The materials quantity variance for May is:

• A)$7,200 Unfavorable
• B)$7,600 Favorable
• C)$5,850 Unfavorable
• D)$7,200 Favorable

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Definitions:

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.

Sociohistorical Context

The intersection of social and historical factors that influence the conditions or events being studied or observed.

Hypothesis

A proposed explanation for a phenomenon, set forth as a starting point for further investigation.

Eclectic Approach

A method that combines multiple theories, styles, or ideas to derive new conclusions or solutions.