Kevin Jarvis Is the Controller of Bitterroot Industries

question 139

Multiple Choice

Kevin Jarvis is the controller of Bitterroot Industries.Kevin prepared the following budgeted income statement at various levels of sales.After careful review of the budgeted income statements,and after discussions with the sales and production managers,the CEO determines that the best alternative is to base the budget on a sales volume of 30,000 units. Actual results for the year were 28,000 units, reflected in the following income statement: What is the sales volume variance for direct material?

• A) $28,000 favorable
• B) $28,000 unfavorable
• C) $6,000 unfavorable
• D) $34,000 favorable

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Definitions:

Joint Ventures

Business arrangements where two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Government Regulations

Rules and statutes set by governments to control the way businesses can operate within their jurisdiction.

Large Investments

Substantial allocations of capital or resources toward projects, assets, or ventures with an expectation of future returns.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and a stake in the company's performance.