Wheat Inc Has an Exclusive Contract with an Exporter

question 110

Multiple Choice

Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year:The total market was estimated to 40,000 bushels at the time of budget. The actual total market for the year is 32,000 bushels.
What is the firm's total sales quantity variance?

• A) $0.
• B) $3,500 unfavorable.
• C) $4,000 favorable.
• D) $37,500 favorable.
• E) $50,000 favorable.

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Definitions:

Peak Production

The period of maximum output or productivity in manufacturing or business operations, often coinciding with high demand seasons.

Production Levels

The various quantities of goods and services a company can produce in a given time period using different combinations of resources.

Workforce Multiskilled

A workforce composed of employees who are capable of performing a variety of tasks or functions across different roles or departments.

Capacity Management

The practice of planning and controlling the resources needed to meet product demand, while optimizing operational efficiency and managing production capacity.