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:

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Return on Sales

A financial ratio that calculates how efficiently a company is at generating operating profit from its revenue.

Return on Assets

Return on Assets (ROA) is a financial ratio that measures the profitability of a company relative to its total assets, indicating how efficient a company is at using its assets to generate profits.

Return on Inventory

A financial metric used to assess how effectively a company generates profits from its inventory investments.