Fletcher Company Collected the Following Data Regarding Production of One

question 115

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products.

-Compute the direct materials quantity variance.

• A)$2,430 unfavorable.
• B)$3,570 unfavorable.
• C)$2,430 favorable.
• D)$6,000 unfavorable.
• E)$3,570 favorable.

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Definitions:

Fixed Asset

Long-term tangible assets, such as machinery and buildings, used in the operation of a business, not expected to be consumed or converted into cash in the short term.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financing activities.

Investing Activities

Transactions and events related to the acquisition or disposal of long-term assets and investments not included in cash equivalents.

Accounts Payable

Liabilities of a business that represent amounts due to suppliers or creditors for goods and services received but not yet paid for.