A Company Uses the Following Standard Costs to Produce a Single

question 3

Multiple Choice

A company uses the following standard costs to produce a single unit of output. During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct materials quantity variance for the month was:

• A) $1,800 favorable
• B) $5,800 unfavorable
• C) $5,800 favorable
• D) $1,800 unfavorable
• E) $1,000 favorable

---

Definitions:

Messy Office

A work environment that is disorganized and cluttered, potentially affecting productivity and mood.

Burning Out

A state of physical, emotional, and mental exhaustion caused by prolonged stress or frustration, particularly in the workplace.

Nonverbal Cues

Refers to the ways in which people communicate without using words, including gestures, facial expressions, and body language.

Group Leader

An individual who guides, directs, and influences the members of a group toward achieving its objectives.