Consider the Following Information: Direct Material Purchased and Used: 80,000

question 4

Multiple Choice

Consider the following information: Direct material purchased and used: 80,000 gallons
Standard quantity of direct material allowed for May production: 76,000 gallons
Actual cost of direct materials purchased and used: $176,000
Unfavourable direct-material quantity variance: $9,400
The direct-material price variance is:

• A)$9,400U.
• B)$11,400F.
• C)$11,400U.
• D)$12,000F.
• E)$12,000U.

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Definitions:

Void

A term referring to a contract or legal agreement that is invalid or without legal effect from its inception.

Disaffirmance

In contract law, the right of a party to renounce a contract to avoid legal obligations, typically used in cases involving minors or instances of fraud.

Majority

The age at which a person is considered an adult and has the legal rights and responsibilities of an adult, or a more than half portion of a group.

False Representation

An untrue statement of fact made by one party to another, which induces the latter to enter into a contract.