Berends Corporation Makes a Product with the Following Standard Costs

question 366

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 price variance for April is:

• A)$17,180 U
• B)$16,192 F
• C)$16,192 U
• D)$17,180 F

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Definitions:

Actual Interest Rate

A rephrased term for the effective interest rate that takes into account the compounding period, fees, or other loan terms, providing a true cost of borrowing.

Actual Interest Rate

The actual rate of interest earned or paid on an investment, loan, or other financial product over a period, typically accounting for compounding.

Discount Method

A valuation technique where a future cash flow or series of cash flows is discounted back to the present to determine its worth.

Actual Interest Rate

The real rate of interest earned or paid after adjusting for compounding and fees.