The Following Company Information Is Available A) $10,000 Unfavorable

question 56

Multiple Choice

The following company information is available. The direct materials quantity variance is: $$\begin{array} { l c } \text { Direct materials used for production } & 36,000 \text { gallons } \\\text { Stardard quantity for units produced } & 34,400 \text { gallons } \\\text { Stardard cost per gallon of direct material } & \$ 6.00 \\\text { Actual cost per gallon of direct material } & \$ 6.10\end{array}$$

• A) $10,000 unfavorable.
• B) $13,200 unfavorable.
• C) $9,600 unfavorable.
• D) $10,000 favorable.
• E) $13,200 favorable.

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Definitions:

Tax Rate

The percentage of an individual's or corporation's income or profits that is paid to the government as tax.

Cash Flow

The net amount of cash and cash equivalents being transferred into and out of a business.

Creditors

Individuals or entities to whom money is owed by a debtor, usually in the form of loans or credit extended for business operations.

Millions

A numeric unit indicating one thousand thousand (1,000,000) of any quantity.