Use the Information Below to Answer the Following Question(s)

question 150

Multiple Choice

Use the information below to answer the following question(s) .Jenny's Condiments makes a specialty mustard for street vendors that is composed of wet ingredients and dry ingredients.Two parts of wet ingredients at a standard cost of $12, and three parts of dry ingredients at a standard cost of $9, are required for every batch.In the first week of July, Jenny produced two hundred thirty batches of mustard using 450 units of wet ingredients and 750 units of dry ingredients.
-What are the direct materials quantity variances for the wet and dry ingredients respectively?

• A)$120 favourable/$540 unfavourable
• B)$90 favourable/$720 unfavourable
• C)$2,880 favourable/$2,610 unfavourable
• D)$120 unfavourable/$540 favourable
• E)$90 unfavourable/$720 favourable

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Definitions:

Present Value

The present worth of a future amount of money or series of cash flows, considering a certain interest rate.

Future Lease Payments

The amounts due over the lease term for the use of an asset.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Captive Finance Company

A subsidiary whose primary purpose is to provide financing to customers buying the parent company's product, facilitating purchases and increasing sales.