Epley Corporation Makes a Product with the Following Standard Costs

question 143

Multiple Choice

Epley Corporation makes a product with the following standard costs:

In July the company produced 3,300 units using 12,240 pounds of the direct material and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the actual variable overhead cost was $20,148.

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 July is:

• A)$3,465 U
• B)$3,900 F
• C)$3,465 F
• D)$3,900 U

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Definitions:

QR Code

Quick Response Code, a two-dimensional barcode that can store information accessible by scanning it with a smartphone camera.

Bar Codes

A method of representing data in a visual, machine-readable form, consisting of bars and spaces, used to track and identify products.

RFID

Radio-Frequency Identification, a technology using wireless non-contact use of radio waves to transfer data for the purposes of automatically identifying and tracking tags attached to objects.

Two-Dimensional Code

A matrix barcode that stores information both horizontally and vertically, such as a QR code.