A Company Uses 3,150 Kilograms of Materials and Exceeds the Standard

question 44

Multiple Choice

A company uses 3,150 kilograms of materials and exceeds the standard by 150 kilograms.The quantity variance is $900 unfavourable.What is the standard price?

• A)$2.00
• B)$3.50
• C)$4.00
• D)$6.00

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Definitions:

Liabilities

Debts or financial responsibilities a business has to people or entities outside of it.

Increase Net Income

Actions or strategies aimed at raising the amount of profits a company keeps after deducting all expenses, taxes, and costs.

Stockholders' Equity

The remaining interest in a company's assets after all liabilities have been subtracted, also referred to as shareholders' equity.

Unearned Revenue Account

A liability account that records payments received for goods or services not yet delivered or performed.