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:

Consolidated Statement

Financial statements that aggregate the financial position and operations of a parent company and its subsidiaries, presenting them as a single economic entity.

Cash Flows

The aggregate monetary transactions entering and leaving a corporation, chiefly influencing its cash flow.

Consolidated Cost Of Goods Sold

The total cost of goods sold by a combined entity, including all subsidiaries, after eliminating intercompany transactions.

Noncontrolling Interest

A stake in a corporation where the shareholder owns less than a majority of the company's shares, without significant control over its strategic decisions.