Duval,IncBudgets Direct Materials at $1/liter and Each Product Requires 4

question 121

Essay

Duval,Inc.budgets direct materials at $1/liter and each product requires 4 liters per unit of finished product.April's activities show usage of 832 liters to complete 196 units at a cost of $798.72.Compute the direct materials price and quantity variances.Indicate if the variance if favorable or unfavorable.

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Definitions:

Tax Owed

The total amount of tax liability that an individual or business is obligated to pay to a taxing authority.

Progressive Tax System

A tax that increases as income increases; the percentage or rate increases.

Income

The money received, especially on a regular basis, for work or through investments.

Head of Household

A filing status for individual U.S. taxpayers who are unmarried and pay more than half the cost of maintaining a home for themselves and a qualifying person.