Answer the Following Question(s)using the Information Below

question 178

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 mix variance for walnut?

• A)$15,900 U
• B)$21,300 F
• C)$19,500 U
• D)$23,250 F
• E)$24,750 U

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Definitions:

Illusory Promise

A promise that does not obligate the promisor to anything.

Legally Enforceable Promise

A commitment or agreement that is recognized by law and can be upheld in a court of justice.

Release

In contract law, a promise made by one party agreeing not to sue a second party.

Legally Sufficient Consideration

Value that the law recognizes as adequate to form a binding contract, typically involving an exchange of goods, services, or promises.