1. In the process of setting production standards, it is better for a company to aim for:

a.theoretical standards.

b.ideal standards.

c.currently achievable standards.

d.consensus standards.

2, Alpha Company manufactures Product P and sells it in packs of 10 units. The actual results for the first week in January are as follows:

Actual production	20,000 packs of Product P
Actual cost of raw material Q	96,500 units at $0.90
Actual cost of labor	480 hours at $6.25
Standard quantity of raw material	96,000 units for 20,000 units of Product P
Standard price of raw material Q	$0.81

Calculate the total material variance for Product P for the first week in January.

a.$9,090 U

b.$3,771 F

c.$2,669 F

d.$12,861 U