The Following Materials Standards Have Been Established for a Particular

question 124

Multiple Choice

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month?

• A)$1, 260 U
• B)$1, 309 U
• C)$11, 220 U
• D)$10, 800 U

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Definitions:

Net Operating Income

The income generated from a company's principal operations, calculated after deducting all operational expenses but before interest and taxes.

Break-Even

The point at which total revenues equal total costs, resulting in no profit or loss.

Sales Dollars

Revenue generated from the sale of goods and services, expressed in monetary units.

Break-Even

The point at which total costs and total sales are equal, resulting in no net loss or gain.