SeaKist Marine Stores Company manufactures decorative fittings for luxury yachts, which require highly skilled labor, and special metallic materials. SeaKist uses standard costs to prepare its flexible budget. For the first quarter of 2016, direct materials and direct labor standards for one of their popular products were as follows:
Direct materials: 1.5 pounds per unit; $4 per pound
Labor: 2 hours per unit; $18 per hour
During the first quarter, SeaKist produced 5,000 units of this product. At the end of the quarter, an examination of the direct materials records revealed that the company used 7,000 pounds of direct materials. The direct materials efficiency variance was $2,000 F. Which of the following is a logical explanation for this variance?
A) The company used fewer labor hours than allowed by the standards.
B) The company paid a lower cost per hour for labor than allowed by the standards.
C) The company used a lower quantity of direct materials than was allowed by the standards.
D) The company paid a lower cost for the direct materials than allowed by the standards.
C) The company used a lower quantity of direct materials than was allowed by the standards.
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Indicate whether the statement is true or false
Zack Peyton borrowed $398,000 from Fifth First Bank to purchase a new home. Zack gave First Bank a mortgage on his home. The mortgage was recorded on January 3, 2014. Zack had made a down payment of $42,000. When Zack moved in, he purchased an in-ground swimming pool from Paddock Pools for $35,000. Zack paid Paddock $4,000 and Paddock financed the remaining amount for him, recording a mortgage
for $29,000 on February 26, 2014. Zack needed window coverings, landscape, and some new furniture. Wells Fargo gave Zack a $150,000 home equity line of credit, secured by a mortgage on Zack's home for $150,000. Wells Fargo recorded the home equity credit line mortgage on February 1, 2014. Zack, because of a bonus at work, did not draw on the line of credit until June 10, 2015, using $25,000. The economy went south somewhere around September 2015. The value of Zack's home dropped by almost 50%. Zack lost his job. He could no longer make his payments. Fifth First Bank served Zack with a notice of foreclosure on November 1, 2015. ?Suppose Tommy moves into Zack's house and begins getting notices from Paddock and Wells Fargo about amounts due from Zack's period of ownership. A)?Tommy is required to pay those amounts because what he paid for the house did not satisfy what was due to all the creditors. B)?Tommy needs to sign a mortgage with these creditors to renew their mortgages in the property. C)?Tommy is not liable to these creditors for what Zack owed. D)?Paddock and Wells Fargo now have their right to foreclose on the property.
"Flattening" an organization decreases the average span of control of each manager.
Answer the following statement true (T) or false (F)
If an organization wants to improve the work environment factor that influences the motivation to learn, it is likely to focus on
A. communicating the purpose of the training programs to employees. B. providing remedial training. C. emphasizing that learning is under employees' personal control. D. communicating why employees were asked to attend training. E. encouraging employees to give feedback to each other.