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:

Financial Advantage

A benefit gained in financial terms, which can result from factors such as cost savings, investment returns, or other monetary gains.

Outside Supplier

An external organization that provides goods or services to another company.

Variable Costs

Charges that fluctuate in accordance with the scale of production or total volume produced.

Special Equipment

Tools, machinery, or devices designed for specific tasks or operations, often requiring specialized knowledge or skills to use effectively.