Question

Say No to the​ Brush, LLC. is a manufacturer of premium hairstyling products.​ It’s most popular​ product, It’s​ Real, is sold in 10 ounce bottles.

One bottle of​ It’s Real is expected to use 8 ounces of direct material at a standard direct material cost of​ $1.75 per ounce. During the​ month, the company purchased​ 320,000 ounces of direct material at a total cost of​ $608,000. However, only​ 285,000 ounces of direct material were used in the monthly production of​ 38,000 bottles.

The expected direct labor cost per bottle of​ It’s Real is​ $2. The company anticipates that 0.25 direct labor hours will be logged for each bottle produced. During the​ month, direct laborers worked​ 10,000 direct labor hours and were paid​ $7.56 per hour.

Given the above​ data, which of the following statements is​ correct?

A.

The total Direct Material Variance can be calculate by adding the Direct Material Price Variance and the Direct Material Quantity Variance.

B.

The direct labor hours allowed for the actual output level were greater than the direct labor hours logged.

C.

The actual direct material unit input ratio was greater than the standard direct material unit input ratio.

D.

The Direct Material Price Variance is favorable.

E.

The actual direct labor rate was less than the standard direct labor rate.

Answer 1