The Apoundright Company Uses Standard Costing and Has Established the Following

question 23

Multiple Choice

The Apoundright Company uses standard costing and has established the following standards for its single product:
Direct materials: 2 gallons at $3 per gallon
Direct labor: 0.5 hours at $8 per hour
Variable overhead: 0.5 hours at $2 per hour
During November, the company made 4,000 units and incurred the following costs:
Direct materials purchased: 8,100 gallons at $3.10 per gallon
Direct materials used: 7,600 gallons
Direct labor used: 2,200 hours at $8.25 per hour
Actual variable overhead: $4,175
The company applies variable overhead to products on the basis of standard direct labor-hours.
-The materials price variance for November was:

• A) $2,310 U
• B) $2,310 F
• C) $810 U
• D) $810 F

Identify and describe the behavior of speculators in the foreign exchange markets.

Recognize the influence of currency value changes on a country's trade balance.

Explain the purchasing power parity theory and its implications for exchange rates.

Understand the factors that cause foreign exchange rates to fluctuate.

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Definitions:

Service Satisfaction

The level of contentment customers feel with the quality and delivery of a service, often reflecting their likelihood to use the service again.

Utilitarian Needs

Needs motivating the consumer to purchase something practical and functional.

Cycle

A sequence of events or processes that recur regularly, returning to the starting point and often leading to predictable outcomes.

Expectancy Theory

A theory that explains the behavioral process of why people choose one behavioral option over others, suggesting that individuals are motivated by an expected outcome.