The Following Information Is Available for Andersen Company for the Month

question 149

Multiple Choice

The following information is available for Andersen Company for the month ending June 30,2014

. • Balance per the bank statement is $10,241.43.
• Balance per books is $9,745.06.
• Check #506 for $1,948.52 and check #510 for $1,800.25 were not shown on the June 30 bank statement.
• A deposit in transit of $5,113.40 had not been received by the bank when the bank statement was generated.
• A bank debit memo indicated an NSF check in the amount of $79 written by Bruce Garrett to Andersen Company on June 13.
• A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue of $75 on June 20.
• The bank statement indicated service charges of $35.

-What is the adjusted bank balance?

• A) $8,876.80
• B) $11,606.06
• C) $19,103.60
• D) $8,152.43

---

Definitions:

Materials Price Variance

The difference between the actual cost and the standard cost of materials used in production.

Standard

A recognized level of quality or attainment that is used as a benchmark for comparison.

Materials Quantity Variance

The difference between the expected amount of materials needed for production and the actual amount used, affecting production costs.

Standard

Typically refers to an accepted level of quality or achievement that is used as a measure, norm, or model in comparative evaluations.