Firecracker Company Has Developed the Following Standards for One of Its

question 108

Multiple Choice

Firecracker Company has developed the following standards for one of its products. Direct materials: 15 pounds × $16 per pound
Direct labor: 4 hours × $24 per hour
Variable manufacturing overhead: 4 hours × $14 per hour
The following activity occurred during the month of October:
Materials purchased: 10,000 pounds costing $170,000
Materials used: 7,200 pounds
Units produced: 500 units
Direct labor: 2,300 hours at $23.60/hour
Actual variable manufacturing overhead: $30,000
The company records materials price variances at the time of purchase.
The direct materials price variance is

• A) $50,000 favorable.
• B) $50,000 unfavorable.
• C) $10,000 favorable.
• D) $10,000 unfavorable.

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Definitions:

Saint-Étienne

A city in France known for its historical and cultural significance, often associated with architectural landmarks and historical sites.

Radiating Chapels

In medieval churches, chapels for the display of relics that opened directly onto the ambulatory and the transept.

Three-Story Nave

An architectural feature found in large churches or cathedrals, referring to a main body that is vertically divided into three levels, often comprised of the nave proper, a triforium, and a clerestory.

Saint-Étienne

Refers to various churches and cathedrals, with the term "Saint-Étienne" often denoting dedication to Saint Stephen, celebrated for its architectural significance.