Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 5

Multiple Choice

Use the information below to answer the following questions. $$\begin{array} { l c c } & \text { Budget for April } & \text { Actual for April } \\\text { Output } & 40,000 \text { units } & 40,000 \text { units } \\\text { Sales } & \$ 400,000 & \$ 400,000 \\\text { Raw materials } & \$ 80,000 & \$ 88,000 \\\text { Labour } & \$ 200,000 & \$ 180,000 \\\text { Overheads } & 225,000 & 305,000\end{array}$$
-Refer to the table above. The raw materials variance can best be described as:

• A)an adverse variance resulting from a rise in the price of raw materials.
• B)an adverse variance resulting from excessive use of raw materials and/or an increase in their price.
• C)an adverse variance resulting from excessive use of raw materials.
• D)a favourable variance resulting from efficient use of raw materials.

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Definitions:

Stratification

The hierarchical arrangement of individuals or groups in a society based on socio-economic status, power, ethnicity, or other differentiating factors.

Culture of Poverty

A social theory that suggests poverty creates certain cultural attitudes and values that perpetuate the condition across generations.

Rewards

Benefits, compensations, or incentives provided to encourage certain behaviors or achievements, often used in various contexts like work, education, or social interactions.

Work

A physical or mental activity performed to achieve a purpose or result, often associated with employment or labor.