Handerson Corporation Makes a Product with the Following Standard Costs

question 111

Multiple Choice

Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August.
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 August is:

• A) $10,980 Favorable
• B) $11,346 Unfavorable
• C) $10,980 Unfavorable
• D) $11,346 Favorable

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Definitions:

Unconsummated Transaction

A transaction that has been initiated but not completed or finalized, often due to unmet conditions or mutual agreement.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.

Unconsummated Transaction

A trade or deal that has been agreed upon in principle but has not been finalized or executed.

Levied

The act of imposing a tax, fee, or fine.