Data from Dunshee Corporation's Most Recent Balance Sheet Appear Below

question 154

Multiple Choice

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. The current ratio at the end of Year 2 is closest to:

• A)0.38
• B)2.17
• C)0.94
• D)0.40

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the budgeted cost, based on standard pricing.

Total Materials Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Overhead Controllable Variance

Overhead Controllable Variance refers to the difference between the actual indirect operational expenses incurred and the budgeted or expected overhead costs that could be influenced by management decisions.

Total Overhead Variance

The difference between the actual overhead incurred and the standard overhead assigned to production.