Answer the Following Question(s)using the Information Below

question 99

Multiple Choice

Answer the following question(s) using the information below.Eco Furniture Ltd.makes wooden furniture.One of their products is a wooden desk.The exterior is made of walnut, a high quality wood, but the interior drawers are made of pine, a less expensive wood.The budgeted direct materials quantities and prices for one desk are:
During the month of November 600 desks were produced.The actual material volume and costs were:

-What is the direct materials efficiency variance for walnut?

• A)$10,200 U
• B)$9,300 F
• C)$9,900 F
• D)$10,400 F
• E)$8,800 U

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Dividends

Profits distributed to shareholders as a reward for their investment in the company.

Liability Subsections

Refers to the various divisions or categories within liabilities on a balance sheet, detailing different types of obligations a company holds.

Current Liabilities

Financial obligations a company is expected to pay within one year, including accounts payable, short-term loans, and accrued expenses.