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:

Premium

The amount paid for an insurance policy, or the extra cost above the nominal value of something such as a bond or stock.

Adjunct Liability

A liability that is attached to an asset in a supporting role, increasing the amount recorded as the asset rather than being recognized separately.

Carrying Value

The Carrying Value, or book value, is an accounting measure that represents the value of an asset in a company's balance sheet, minus depreciation or amortization.

Registered Bonds

Debt securities whose ownership is recorded by issuing company, ensuring only the registered owner gets interest payments.