A Company Uses the Following Standard Costs to Produce a Single

question 40

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 price variance for the month was:

• A) $6,000 unfavorable
• B) $1,800 favorable
• C) $1,000 favorable
• D) $5,800 unfavorable
• E) $1,800 unfavorable

Understand the process and implications of asset impairment, including loss calculations.

Understand the differences, applications, and impacts of various depreciation methods on financial statements.

Learn the accounting treatments for disposal of assets, including calculations of gain or loss.

Grasp the concept and treatment of Modified Accelerated Cost Recovery System (MACRS) for tax purposes.

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Definitions:

Federal Prison

A detention facility operated by the federal government to incarcerate individuals convicted of federal crimes.

Criminal Act

An action that violates the law and is subject to prosecution and punishment.

Invasion of Privacy

The intrusion into the personal life of another person without consent, leading to the violation of confidentiality, solitude, or the public disclosure of personal information.

Exam Room

A designated space in a healthcare facility where medical examinations, procedures, and consultations are conducted.