What is the materials quantity variance for the month?

A) $5,916 U.
B) $8,550 U.
C) $8,700 U.
D) $5,814 U.

Manufacturing overhead consists of:

A) all manufacturing costs, except direct materials and direct labour.
B) indirect labour but not indirect materials.
C) indirect materials but not indirect labour.
D) all manufacturing costs.

Factory overhead is often collected and summarized in a subsidiary factory overhead ledger.

The overhead applied to each unit of Product X2 under activity-based costing is closest to:

A) $2,082.89 per unit
B) $2,186.02 per unit
C) $2,964.58 per unit
D) $1,837.85 per unit

At Methods Corp., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ratio of this size?

A) The company may have difficulty keeping costs under control.
B) The company may have difficulty attracting and keeping qualified employees.
C) The company may be in violation of the Fair Labor Standards Act.
D) The company may have misclassified these employees as exempt when they are nonexempt.
E) The company may not have met minimum-wage requirements.

Analysts must recognize that the use of the specific identification method to value inventory has a serious deficiency because it

A) allows manipulation of net income.
B) allows manipulation of period costs.
C) allows manipulation of selling expenses.
D) allows manipulation of administrative expenses.