The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective.The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: The quantities of chemicals purchased and used

during the current production period are shown in the schedule below. A total of 140 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical usage variations at the end of the production period. Is the total material price variance favorable or unfavorable? 



A. Favorable.

B. Unfavorable.


Answer: B

Business

You might also like to view...

In the final paragraph of your application letter you should

A) show the reader that you're a contender and demand an interview. B) close with a quote from your favorite philosopher or poet. C) request an interview and provide contact information. D) include information about extracurricular activities to show how well-rounded you are. E) thank the reader in advance for interviewing you.

Business

Consumer food cooperative sales have grown to a substantial share of total supermarket sales due to consumer beliefs in low supermarket produce quality and high supermarket price levels

Indicate whether the statement is true or false

Business

“You came early to class and therefore you must be a good overall student.” What type of performance appraisal error is involved here?

A. Bias B. Halo C. Similarity D. Stereotyping E. Distributional

Business

Although it is often easier for one person to make decisions, the quality of decision making is often improved by involving the team

Indicate whether the statement is true or false

Business