Gilson Corporation Manufactures and Sells a Single Product

question 48

Multiple Choice

Gilson Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During April, the company budgeted for 5, 100 units, but its actual level of activity was 5, 060 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Actual results for April: The spending variance for direct materials in April would be closest to:

• A)$2, 020 F
• B)$2, 020 U
• C)$2, 424 F
• D)$2, 424 U

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Definitions:

Future Trends

Predictions or projections about the direction of developments or occurrences in any field over upcoming periods.

Demographic Transition Model

A theory that describes the transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Birth Rates

The number of live births per thousand of the population in a given period, often used to measure population growth.

Preindustrial Stage

A period or phase in development before the widespread industrialization, characterized by agrarian economies and limited technology.