Diskind Corporation Manufactures and Sells a Single Product

question 153

Multiple Choice

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:
Actual results for October:
-The spending variance for direct materials in October would be closest to:

• A)$1,295 F
• B)$2,010 U
• C)$2,010 F
• D)$1,295 U

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Definitions:

Monocline

A geological fold in which all strata are inclined in the same direction, creating a step-like feature in the landscape.

Anticline

A type of fold in rock layers that arches upwards, with the oldest layers at the core of the fold.

Horsts And Grabens

Geological structures formed by the movement of the Earth's crust, where a "horst" is an elevated block surrounded by faults and a "graben" is a depressed block bordered by faults.

Normal Faults

Cracks in the Earth's crust where one block of rock drops down relative to another due to extensional forces.