Fletcher Company Collected the Following Data Regarding Production of One

question 61

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance. $\begin{array}{llr} \text { Direct materrals standard (6 lbs. @ \$2/1b.) } &\$12& \text { per finished unit } \\ \text { Actual direct materials used} &243,000& \text {Ibs. } \\ \text {Actual finished units produced } &40,000& \text {units } \\ \text { Actual cost of direct materials used } &\$483,570\\\end{array}$

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

---

Definitions:

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a yearly basis.

Interest Rate

The percentage of the principal that is paid as a fee over a certain period of time for the use of borrowed money.

Compounded Semiannually

The process of applying interest to an initial sum plus any previously earned interest, calculated twice a year.

Interest Rate

The percentage of the principal amount charged by a lender to a borrower for the use of assets, typically expressed on an annual basis.