Dirickson Inc

question 139

Multiple Choice

Dirickson Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
The company has reported the following actual results for the product for July:

-The raw materials quantity variance for the month is closest to:

• A) $86 U
• B) $86 F
• C) $94 U
• D) $94 F

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Definitions:

Price Inflation

The pace at which the overall price level of goods and services increases, leading to a decline in purchasing power.

Price Deflation

A decrease in the general price level of goods and services over a period.

Time Series Data

Data collected and recorded at regular intervals over a period of time, often used for analyzing trends, cycles, and forecasts.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country's economy in real terms over a specific period.