Fletcher Company Collected the Following Data Regarding Production of One

question 138

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. $$\begin{array} { l rl} \text { Direct materlals stardard (6lbs. @ \$2/16.) } & \$ 12 & \text { per finished unit } \\\text { Actual direct materials used } & 243,000 & \text { lbs. } \\\text { Actual finished units produced } & 40,000 & \text { units }\\\text { Actual cost of direct materials used}&\$483,570\\\end{array}$$

• A) $2,430 unfavorable.
• B) $3,570 unfavorable.
• C) $2,430 favorable.
• D) $6,000 unfavorable.
• E) $3,570 favorable.

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Definitions:

Balance Sheet Columns

Columns in a balance sheet that categorize and display assets, liabilities, and equity balances at a specific point in time.

Net Income

The net income a business earns following the deduction of all costs, taxes, and expenses from its total revenue.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used as the basis for preparing financial statements.

Ledger

A comprehensive collection of accounts that records all financial transactions of a business, categorized for reporting and analysis purposes.