Galla Corporation Makes a Product with the Following Standard Costs

question 150

Multiple Choice

Galla Corporation makes a product with the following standard costs:


The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

-The materials price variance for June is:

• A)$6,150 F
• B)$6,150 U
• C)$6,510 F
• D)$6,510 U

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Definitions:

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Voluntary actions intended to benefit or help others, such as sharing, comforting, cooperating, and offering assistance.

Sharing

The voluntary act of giving or distributing something among multiple people or entities.

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Providing comfort, support, or confidence to someone, often by removing doubts or fears.

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A male sex hormone produced by the testes that promotes the development of male sexual characteristics and sperm.