The Following Data Pertain to Operations Concerning the Product for the Last

question 128

Multiple Choice

The following data pertain to operations concerning the product for the last month: What is the materials price variance for the month?
A.$14,850 U
B.$8,250 U
C.$8,640 U
<underLine>D.</underLine> $2,860 F
AP = $60,500 / 4,400 = $13.75
Materials price variance = AQ (AP - SP) = 4,400 ($13.75 - $14.40) = $2,860 F
-In October,5,000 meters of raw material were purchased at an actual cost of $4.50 per meter.During October,4,850 meters of the raw material were used to produce 2,400 units of the completed product.Standards call for 2 meters of the raw material for each unit of the completed product.The standard price of the raw material is $4.70 per meter.The materials variances for October were:

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Rationalization

The process of logically justifying individual behavior or decisions that might otherwise appear irrational or unjustifiable, often by providing plausible but not necessarily true reasons.

False Invoices

Documents issued to request payment for goods or services not delivered or rendered, used to defraud or embezzle.

Ethics

The study of moral obligations, or separating right from wrong.

Rational Leader

A leader who makes decisions based on logic, analysis, and objectivity.