Berends Corporation Makes a Product with the Following Standard Costs

question 149

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 quantity variance for April is:

• A)$8,430 U
• B)$8,430 F
• C)$7,868 U
• D)$7,868 F

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Definitions:

Price Uncertainty

The unpredictability of the cost of goods or services in the future, affecting budgeting and planning.

Warehousing Space

The area available for the storage of goods in a warehouse, crucial for inventory management and logistics.

Supply Chain Design

The process of structuring a supply chain to meet the goals of cost, efficiency, delivery, and flexibility.

Significant Investments

involves allocating substantial financial resources into a project, asset, or venture with the expectation of achieving considerable returns or benefits.