A Company Uses the Following Standard Costs to Produce a Single

question 204

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

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Definitions:

Demographic Characteristics

Attributes of populations, such as age, race, gender, and income, often used in research to segment and analyze groups of people.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, denoted as alpha, and often set at 0.05 or 5%.

Fast-Food Chicken Restaurants

Quick service restaurants specializing in chicken dishes, often featuring options like fried chicken, sandwiches, and wraps.

Kruskal-Wallis H Statistic

A nonparametric test used to determine if there are statistically significant differences between two or more groups of an independent variable.