Sanchez Company's Output for the Current Period Was Assigned a $200,000

question 36

Multiple Choice

Sanchez Company's output for the current period was assigned a $200,000 standard direct materials cost.The direct materials variances included a $5,000 favorable price variance and a $3,000 unfavorable quantity variance.What is the actual total direct materials cost for the current period?

• A)$208,000.
• B)$198,000.
• C)$202,000.
• D)$192,000.
• E)$205,000.

---

Definitions:

Bankrupt Party

A term referring to an individual or entity that has been legally declared unable to pay their debts.

State's Exemptions

Provisions in law that allow individuals to protect certain amounts or types of property from seizure or attachment by creditors.

Straight Bankruptcy

A term often used to refer to Chapter 7 bankruptcy, which involves the liquidation of a debtor's assets to repay creditors.

Chapter 7

A provision of the United States Bankruptcy Code dealing with liquidation, where a debtor's assets are sold to pay off creditors.