Majer Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials 6.4ounces$3.00per ounce$19.20Direct labor 0.4hours$13.00per hour$5.20Variable overhead 0.4hours$5.00per hour$2.00The company reported the following results concerning this product in February. Originally budgeted output 4,800unitsActual output 4,900unitsRaw materials used in production 30,230ouncesActual direct labor-hours 1,910hoursPurchases of raw materials 32,600ouncesActual price of raw materials$2.90per ounceActual direct labor rate$12.40per hourActual variable overhead rate$4.90per hourThe company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when
the materials are purchased.The materials price variance for February is:
A. $3,136 U
B. $3,136 F
C. $3,260 U
D. $3,260 F
Answer: D
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Lensa Inc. purchased machinery several years ago for $400,000. This year, book depreciation on the machinery was $40,000, MACRS depreciation was $35,720, and Lensa's marginal tax rate is 21%. Which of the following statements is true?
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Kenneth has a periodic tenancy that requires him to pay rent weekly. Kenneth wishes to terminate his tenancy. Under the common law, he must give his landlord notice of at least
a. one week. b. two weeks. c. thirty days. d. sixty days.
Top-down strategic planning as an approach to the strategic management process will be most effective when the
A. top management wants to decentralize decision making. B. size of the firm is large. C. environment is constantly changing. D. probability of black swan events is high.