Consider the Following Information: Direct Material Purchased and Used: 80,000

question 4

Multiple Choice

Consider the following information: Direct material purchased and used: 80,000 gallons
Standard quantity of direct material allowed for May production: 76,000 gallons
Actual cost of direct materials purchased and used: $176,000
Unfavourable direct-material quantity variance: $9,400
The direct-material price variance is:

• A)$9,400U.
• B)$11,400F.
• C)$11,400U.
• D)$12,000F.
• E)$12,000U.

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Definitions:

Goodwill

An intangible asset arising when a company acquires another for more than the fair value of its net identifiable assets.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors.

Non-controlling Interest

The share of ownership in a subsidiary that doesn't belong to the parent company.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries, presenting them as a single economic entity.