The Following Materials Standards Have Been Established for a Particular

question 33

Multiple Choice

The following materials standards have been established for a particular product:

The following data pertain to operations concerning the product for the last month:

The direct materials purchases variance is computed when the materials are purchased.
-What is the materials quantity variance for the month?

• A)$1,260 U
• B)$1,309 U
• C)$11,220 U
• D)$10,800 U

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Definitions:

Average Total Assets

The average value of all the assets a company owns over a specific time period, calculated by adding the beginning and ending assets and dividing by two.

Net Sales

The amount of revenue generated by a company after deducting returns, allowances for damaged goods, and discounts.

Modified Accelerated Cost Recovery System (MACRS)

A tax depreciation system in the United States that allows for the accelerated write-off of property under various classifications.

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.