Reichs Company the Following Information Is for Reichs Company's September

question 148

Multiple Choice

Reichs Company The following information is for Reichs Company's September production:
$\begin{array}{ll}\textbf { Standard: }\\\text { Material } & 4.0 \text { feet per unit } @ \$ 3.75 \text { per foot } \\\text { Labor } & 3.0 \text { hours per unit } @ \$ 8.25 \text { per hour }\end{array}$

$\begin{array}{ll}\textbf { Actual: }\\\text { Production } & 3,500 \text { units produced during the month } \\\text { Material } & 14,200 \text { feet used; } 14,700 \text { feet purchased @ } \$ 3.70\text { per foot } \\\text { Labor } & 10,400 \text { direct labor hours } \$ 8.35\text { per hour }\end{array}$ (Round all answers to the nearest dollar.)
Refer to Reichs Company.What is the material quantity variance?

• A)$ 740 F
• B)$ 750 F
• C)$ 750 U
• D)$2,625 U

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Definitions:

Accounts Payable

Liabilities of a business arising from credit purchases from suppliers, displayed on the company's balance sheet as money owed.

Assets Sold

The sale of company assets, which could include equipment, properties, or other resources owned by the company.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest.

Liabilities

Financial obligations owed by a business to creditors, including loans, accounts payable, and any other debts.