Roberts Company Uses a Standard Costing System

question 115

Multiple Choice

Roberts Company uses a standard costing system.The following information pertains to direct materials for the July: Roberts Company reports its material price variances at the time of purchase.What is the material usage variance for Roberts Company?

• A)$900 F
• B)$1,950 F
• C)$2,850 F
• D)$900 U

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Definitions:

Option

A contract that grants the holder the right, but not the obligation, to buy or sell an asset at a designated price within a specified timeframe.

Promissory Estoppel

A legal principle that prevents a promisor from retracting a promise which the promisee has relied upon to their detriment, in the absence of a formal contract.

Unilateral Contract

An agreement in which one party makes a promise, but the other party is not required to respond with a promise in return; performance is the only acceptance needed.

Invitation Seeking Offers

An invitation to negotiate or an invitation to the public to make an offer, which is a common practice in contract law, particularly in the context of tenders.