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

question 177

Multiple Choice

Melrose Corporation makes a product that uses a material with the following standards: The company budgeted for production of 5, 800 units in September, but actual production was 5, 900 units.The company used 50, 210 pounds of direct material to produce this output.The company purchased 55, 100 pounds of the direct material at $5.80 per pound. The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for September is:

• A)$3, 770 F
• B)$3, 900 U
• C)$3, 770 U
• D)$3, 900 F

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Definitions:

Enduring Power of Attorney

A legal document that allows an individual to appoint another person to make decisions on their behalf, even if they become mentally incompetent.

Contract of Agency

A legal agreement in which one party (the agent) agrees to act on behalf of another party (the principal) in business transactions.

Information

Data, facts, or knowledge provided or learned about something or someone.

Consciously Ratifies

The act of officially approving or confirming a decision or agreement with full awareness.