Use the Table for the Question(s)below

question 72

Multiple Choice

Use the table for the question(s) below.

-Refer to the balance sheet above.When using the book value of equity,the debt-equity ratio for Luther in 2006 is closest to:

• A)2.21
• B)2.29
• C)2.98
• D)3.03

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Definitions:

Standard Materials Quantity

The expected amount of materials that should be used for the production of a certain number of units, as set by a company's standards.

Board Feet

A unit of measure for the volume of lumber, equivalent to a piece of wood one foot long, one foot wide, and one inch thick.

Direct Materials Quantity Variance

The difference between the expected and actual quantity of materials used in production, multiplied by the standard cost per unit of material.

Actual Costs

The real costs incurred in the production of goods or services, including all expenses such as materials, labor, and overhead.