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Max Company Has Developed the Following Standards for One of Its

question 19

Multiple Choice

Max Company has developed the following standards for one of its products. $\begin{array}{ll}\text { Direct materials: } & 15 \text { kilograms } \times \$ 16 \text { per kilogram } \\\text { Direct labour: } & 4 \text { hours } \times \$ 24 \text { per hour } \\\text { Variable manufacturing overhead: } & 4 \text { hours } \times \$ 14 \text { per hour }\end{array}$

$\begin{array}{ll}\text { The following activity occurred during the month of October: }\\\text { Materials purchased: } & 10,000 \text { kilograms costing } \$ 170,000 \\\text { Materials used: } & 7,200 \text { kilograms } \\\text { Units produced: } & 500 \text { units } \\\text { Direct labour: } & 2,300 \text { hours at } \$ 23.60 / \text { hour } \\\text { Actual variable manufacturing overhead: } & \$ 30,000\end{array}$ The company records materials price variances at the time of purchase.
What is the direct materials price variance?

Learn how to calculate and eliminate unrealised gains and losses on intragroup transactions during consolidation.

Recognize the necessity of deferred tax assets and liabilities in intragroup transactions and how they're calculated.

Understand current accounting regulations regarding the disclosure of gains and losses on the disposal of non-current assets.

Gain insights into the depreciation adjustment requirements for assets acquired within the group and their impact on consolidation.

Definitions:

Resources

Assets or inputs needed for individuals or organizations to function effectively.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties find a mutually acceptable solution.

Formal Hearing

A structured legal proceeding where evidence and arguments are presented to determine an outcome in a dispute.

Mediator

A neutral third party who facilitates negotiations and conflict resolutions between disputing parties to reach a mutual agreement.