Turrubiates Corporation Makes a Product That Uses a Material with the Following

question 399

Multiple Choice

Turrubiates Corporation makes a product that uses a material with the following standards: The company budgeted for production of 3,400 units in April, but actual production was 3,500 units. The company used 27,200 liters of direct material to produce this output. The company purchased 19,700 liters of the direct material at $2.2 per liter.The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for April is:

• A) $1,320 Unfavorable
• B) $1,260 Unfavorable
• C) $1,320 Favorable
• D) $1,260 Favorable

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Definitions:

Invest

The process of investing funds or assets in a project with the aim of earning extra income or gains.

Simple Interest

Interest calculated only on the principal amount, or initial investment, not on the accumulated interest of previous periods.

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.

Annual Rate of Interest

The yearly interest rate charged on borrowed money or paid on investments, expressed as a percentage of the principal.