Beakins Corporation Produces a Single Product

question 103

Multiple Choice

Beakins Corporation produces a single product. The standard cost card for the product follows:

During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below:

The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours.


-The materials price variance for the period is:

• A)$1,250 F
• B)$1,500 F
• C)$1,250 U
• D)$1,500 U

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Definitions:

Total Excess

The amount by which returns on an investment exceed the benchmark or risk-free return over a specified period.

Bogey Portfolio

An investment portfolio that serves as a benchmark against which other portfolios' performances are measured.

Geometric Average

A method of calculating the average rate of return of a set of values multiplicatively linked together, commonly used to determine the performance of investments over time.

Compounding Principle

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.