Jeff Olson Company Has the Following Information Available: the Cost

question 97

Multiple Choice

Jeff Olson Company has the following information available: The cost driver of product costs is units of output.What is the flexible budget variance for direct material costs?

• A)$20,000 Unfavorable
• B)$20,000 Favorable
• C)$60,000 Favorable
• D)$60,000 Unfavorable

---

Definitions:

Asset Test

A liquidity ratio, also known as the quick ratio, measuring a company's ability to meet its short-term obligations with its most liquid assets.

Reportable

Pertains to information or data that must be disclosed or submitted to a governing body or authority according to regulations.

Cabinets Segment

A specific business unit within a company that focuses on the production and sale of cabinetry.