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

question 105

Multiple Choice

Use the information below to answer the following question(s) .Tractor Corporation produces toy tractors.The company uses the following direct cost categories:
Actual performance for the company is shown below:
Actual output: 5,000 units
Direct Materials:
Direct Manufacturing Labour:
Direct Marketing Labour:

-What is the rate variance of the direct manufacturing labour, and the direct marketing labour, respectively?

• A)$4,750 favourable; $12,500 favourable
• B)$8,000 favourable; $10,000 favourable
• C)$3,500 unfavourable; $6,750 unfavourable
• D)3,500 favourable; $6,750 favourable
• E)$4,750 unfavourable; $12,500 unfavourable

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Definitions:

Down Payment

An initial, upfront payment made for the purchase of an asset, with the balance of the price to be paid later.

Present Value

The valuation today of an incoming stream of cash or one-time future payment, after accounting for a specified rate of return.

Cash Outflows

Money or cash disbursed by the business for various purposes, such as paying expenses, investing in assets, or repaying debts.

Cash Inflows

Money received by a business from its various activities, including sales, financing, and investments.