Christian Company Reported a Flexible Budget Variance for Direct Materials

question 35

Multiple Choice

Christian Company reported a flexible budget variance for direct materials costs of $10,000 Favorable for the current year.If the direct materials price variance was $2,000 Favorable,what was the direct materials quantity variance?

• A) $8,000 Unfavorable
• B) $8,000 Favorable
• C) $12,000 Favorable
• D) $12,000 Unfavorable

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Definitions:

Interest Expense

Expenses an entity faces for using borrowed money over a specific duration.

Prepaid Interest

Interest that is paid in advance of the period to which it applies, often relating to mortgage or loan agreements.

Worksheet

An informal accounting document used internally to assemble, adjust, and sort various account balances for the preparation of financial statements.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in order to check the mathematical accuracy of the accounts' balances.