Todco planned to produce 3,000 units of its single product, Teragram, during November. The standard specifications for one unit of Teragram include six pounds of material at £0.30 per pound. Actual production in November was 3,100 units of Teragram. The accountant computed a favourable materials purchase price variance of £380 and an unfavourable materials quantity variance of £120. Based on these variances, one could conclude that
A) more materials were purchased than were used.
B) more materials were used than were purchased.
C) the actual cost of materials was less than the standard cost.
D) the actual usage of materials was less than the standard alloweD.
Correct Answer:
Verified
Q41: A favourable material price variance coupled with
Q42: In some cases a favourable variance can
Q43: Is the main purpose of standard costing
Q44: The entry to record unfavorable labour efficiency
Q45: Standard Costing is not worth bothering with
Q47: The standard cost per unit is computed
Q48: An unfavourable material quantity variance indicates that
A)actual
Q49: Throop Company's standards call for one
Q50: The entry to record an unfavorable material
Q51: If managers are insensitive and use variances
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