Magno Cereal Corporation uses a standard cost system for its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for August? Question 8 options: A) $1,500 Unfavorable B) $54,000 Unfavorable C) $19,500 Unfavorable D) $18,000 Favorable

D) $18,000 Favorable

Explanation:

The computation of the material quantity variance is given below:

Material quantity variance is

= standard cost × ( actual quantity used - standard quantity usage per batch × batches produced)

= $3.00 × (78,000 - 60,000 × 1.4)

= $18,000, favorable

hence, the material quantity variance is $18,000 favorable

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.