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

question 70

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 November is:

• A)$3,290 F
• B)$3,196 F
• C)$3,290 U
• D)$3,196 U

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Definitions:

Merchants

Business people or companies engaged in retail or wholesale trade of goods or services.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the parties involved, ensuring enforceability.

Unconscionable

Refers to actions or terms in contracts that are so unfair or oppressive to one party that no reasonable or informed person would agree to them.

Contract Provision

A specific clause, term, or condition outlined within a contract that specifies obligations, rights, or restrictions.