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:

Communicating Findings

The process of sharing the results of an analysis or research study with stakeholders or the scientific community.

Research Hypothesis

A statement in research that predicts a significant relationship between variables, suggesting that one variable has an effect on another.

Sample

A subset of a population used in statistical analysis, which is representative of the whole population to infer conclusions about the population.

Population

The entire group of individuals or objects that is the subject of a statistical analysis.