Canevari Corporation Makes a Product That Uses a Material with the Following

question 58

Multiple Choice

Canevari Corporation makes a product that uses a material with the following standards: The company budgeted for production of 1,300 units in April, but actual production was 1,200 units. The company used 3,750 kilos of direct material to produce this output. The company purchased 4,100 kilos of the direct material at a total cost of $8,610. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for April is:

• A)$360 F
• B)$410 U
• C)$410 F
• D)$360 U

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Definitions:

Industrial Products

Goods used in the production of other goods or services, maintenance of establishments, or for resale to other businesses, not typically purchased by consumers for personal use.

Consumer Services

Services designed to meet the needs and expectations of consumers, encompassing a wide range of industries including retail, healthcare, and financial services.

Derived Demand

Demand for a good or service that arises from the demand for another good or service, for example, the demand for steel being derived from the demand for automobiles.

Industrial Products

Goods and services designed and marketed for use in production and operations, often sold to other businesses rather than end consumers.