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

question 342

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:

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services provided on credit.

Credit Sales

Sales made on credit, allowing the buyer to pay at a later date.

Days' Sales Outstanding

A financial metric that shows the average number of days it takes a company to collect payments after a sale has been made.

Exercise Value

Equal to the current price of the stock (underlying the option) less the strike price of the option.