Bumgardner Inc

question 236

Multiple Choice

Bumgardner Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for April:
The direct materials purchases variance is computed when the materials are purchased.
The raw materials price variance for the month is closest to:

• A) $45,780 F
• B) $45,780 U
• C) $41,447 U
• D) $41,447 F

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Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit in the future.

Present Benefits

The advantages or positive outcomes that are received or enjoyed at the current time, as opposed to benefits that may accrue in the future.

Future Benefits

Expected advantages or gains that will be received in the future as a result of current investments or actions.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs resources and technology, illustrating trade-offs and opportunity costs.