Max Company Has Developed the Following Standards for One of Its

question 153

Multiple Choice

Max Company has developed the following standards for one of its products. The following activity occurred during the month of October:
The company records materials price variances at the time of purchase. The direct materials price variance is

• A) $50,000 F.
• B) $50,000 U.
• C) $10,000 U.
• D) $10,000 F.

---

Definitions:

PP&E (Net)

The net value of a company's Property, Plant, and Equipment after accounting for depreciation and amortization, representing the tangible assets used in operations.

Ending Balance

Ending balance refers to the amount of money remaining in a particular account at the conclusion of a given period, after all transactions have been accounted for.

Finished Goods

Items that have been completed by the manufacturing process, and are ready for sale to customers.

Ending Balance

The final amount in an account at the end of an accounting period, reflecting all transactions that occurred during that period.