The Following Production Information Is Available for January The Direct Materials Price Variance Is:
A)$28,000 Unfavorable
B)$45,000 Unfavorable

question 122

Multiple Choice

The following production information is available for January:
$\begin{array}{lrr}\text { Actual Hours used } & 45,000 \\\text { Actual Rate per hour } & \$ 15 \\\text { Standard Rate per hour } & \$ 14 \\\text { Standard hours for units produced } & 47,000\end{array}$
The direct materials price variance is:

• A)$28,000 unfavorable
• B)$45,000 unfavorable
• C)$28,000 favorable
• D)$45,000 favorable

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Definitions:

Sales Revenues

Income received from selling goods or services over a period of time before any costs or expenses are deducted.

Capital Cost Allowance

A form of tax depreciation that allows businesses in Canada to deduct the cost of a depreciable property over several years.

Cash Operating Costs

Expenses associated with the day-to-day operations of a business that are paid out in cash.

Tax Rate

The percentage at which an individual or corporation is taxed by a government entity.