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

question 5

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 quantity variance for April is:

• A)$315 F
• B)$300 U
• C)$300 F
• D)$315 U

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, representing the average difference from the mean; widely used in finance as a measure of investment risk.

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another, securing a risk-free profit.

Long-short Equity Fund

A type of investment fund that takes both long and short positions in stocks, aiming to profit from increases in the prices of some stocks and decreases in the prices of others.

Risk-free Rate

The theoretical rate of return on an investment with zero risk, typically represented by U.S. Treasury securities.