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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