(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: Standard Quantity or Hours Standard Cost per Mip Direct Materials 6 board metre $9.00 Direct Labour 0.8 hours $9.60 There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000. Used 12,000 board metres to produce 2,100 Mips. Used 1,700 hours of direct labour time at a total cost of $20,060. (Appendix 10B) To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account? Question 9 options: $900 debit. $900 credit. $3,600 debit. $3,600 credit.
(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: Standard Quantity or Hours Standard Cost per Mip Direct Materials 6 board metre $9.00 Direct Labour 0.8 hours $9.60 There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000. Used 12,000 board metres to produce 2,100 Mips. Used 1,700 hours of direct labour time at a total cost of $20,060. (Appendix 10B) To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account? Question 9 options: $900 debit. $900 credit. $3,600 debit. $3,600 credit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip:
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $24,000.
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $20,060.
(Appendix 10B) To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account?
| Standard Quantity or Hours | Standard Cost per Mip | |
| Direct Materials | 6 board metre | $9.00 |
| Direct Labour | 0.8 hours | $9.60 |
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $24,000.
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $20,060.
(Appendix 10B) To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account?
Question 9 options:
|
|
$900 debit.
|
|
|
$900 credit.
|
|
|
$3,600 debit.
|
|
|
$3,600 credit.
|
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