The Following Data Relate to Direct Materials Costs for November

question 129

Multiple Choice

The following data relate to direct materials costs for November: What is the direct materials quantity variance?

• A) $3,600 favorable
• B) $1,240 favorable
• C) $3,600 unfavorable
• D) $1,240 unfavorable

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Definitions:

Revenue Formulas

Equations or models used to calculate the total amount of income generated from business activities during a specific period.

Shipping Container

A large, standardized, durable container used for transporting goods by sea, rail, or road.

Revenue Variances

The variance between the revenue that was actually generated and the anticipated or planned amount of revenue.

Spending Variances

The difference between the actual cost incurred and the budgeted or standard cost for a particular period.