Tharaldson Corporation Makes a Product with the Following Standard Costs

question 452

Multiple Choice

Tharaldson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for June is:

• A) $2,242 Unfavorable
• B) $2,242 Favorable
• C) $2,360 Unfavorable
• D) $2,360 Favorable

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Definitions:

Number of Buyers

A factor that affects market demand, representing how many consumers are interested in purchasing a particular good or service.

Change in Supply

The shift in the quantity of a good that suppliers are willing and able to sell, influenced by factors like costs of production, technology, or expectations of future prices.

Quantity Supplied

The total amount of a specific good or service that producers are willing and able to sell at a given price over a specified period.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity supplied, typically upward sloping.