Berends Corporation Makes a Product with the Following Standard Costs

question 105

Multiple Choice

Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is:

• A)$8, 430 U
• B)$8, 430 F
• C)$7, 868 U
• D)$7, 868 F

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Definitions:

Net Operating Income

The profit generated from a company's core business operations, excluding investments and taxes.

Year 1

The first year in a given time series or financial model, often the base or starting year for analysis.

Average Operating Assets

The average value of the assets used in the normal operations of a business, typically calculated over a specific period of time.

Combined Margin

A financial metric that calculates the total profitability of a product by combining different types of margins, such as gross and net margins.