Use the Following Information to Answer the Next Question(s)

question 7

Multiple Choice

Use the following information to answer the next question(s) :
The standard cost sheet for one of the Vitton Company's products is presented below.
*Rate based on expected activity of 12,000 hours
The following results for last year were recorded.

-The materials price variance is

• A) $7,800 unfavourable.
• B) $7,800 favourable.
• C) $8,400 unfavourable.
• D) $8,400 favourable.

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Definitions:

Supplies Account

An account used to track the cost of consumable items used by a company during its operations, which are not part of the final product.

Adjusting Entry

An accounting record made at the end of an accounting period to allocate income and expenditure to the correct period.

Physical Count

Physical count refers to the actual counting of inventory items in a warehouse or store to verify stock levels.

Depreciation

An approach to apportioning the value of a tangible resource over the period it is expected to be used.