Matinna Co All Materials Purchased During the Month Were Issued to Production

question 125

Multiple Choice

Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July: $\begin{array}{lrr}\text { Standard quantity of direct materials for the units manufactured (SQ) } & 30,000 \\\text { Direct materials purchases-actual cost } & \$ 63,000 \\\text { Standard price per unit of direct materials (SP) } & \$ 2.00 \\\text { Direct material efficiency variance-favorable } & \$ 4,500\end{array}$ All materials purchased during the month were issued to production.
What was the company's direct materials flexible-budget (FB) variance for July (rounded to the nearest dollar) ?

• A) $1,500 favorable.
• B) $3,000 unfavorable.
• C) $3,000 favorable.
• D) $7,500 unfavorable.
• E) $7,500 favorable.

Identify and explain the effects of monetary policy changes on interest rates and the economy.

Explain the concept and implications of Bracket Creep.

Calculate and interpret the variance and standard deviation as measures of risk.

Understand the concept and calculations related to Annual Percentage Rates (APRs) and effective annual rates.

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Definitions:

Clutch Plates

Components in a clutch assembly, which, when pressed together, transmit power from the engine to the gearbox.

Friction Discs

Components within a clutch or brake assembly that create friction necessary for engaging or disengaging the drive mechanism.

Transmission Size

The physical dimensions or capacity of a vehicle's transmission, indicating its ability to handle power.

Hydromechanical Transmission

A transmission system that combines hydraulic and mechanical components to transfer power from the engine to the wheels.