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

question 25

Multiple Choice

Use the information below to answer the following question(s) .Sawyer Industries Inc.(SII) , developed standard costs for direct material and direct labour.In 2019, SII estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container. During July 2020, SII produced and sold 10,000 containers using 2,200 kilograms of direct materials at an average actual cost per kilogram of $24 and 1,050 direct manufacturing labour hours at an average actual wage of $14.75 per hour.
-July's direct manufacturing labour flexible-budget variance is

• A)$750.00 unfavourable.
• B)$262.50 favourable.
• C)$262.50 unfavourable.
• D)$487.50 favourable.
• E)$487.50 unfavourable.

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Definitions:

Monopolistically Competitive Markets

Markets characterized by many sellers offering products that are similar but not identical, allowing for some degree of market power and price differentiation.

Product Differentiation

This is a strategy where companies distinguish their products from those of competitors on bases such as quality, design, or customer service.

Product Differentiation

A marketing strategy that businesses use to distinguish their products from similar offerings, through features, branding, quality, or other attributes.

Excess Capacity

The situation in which a firm is producing at a lower scale of output than it has been designed for, typically because of declining demand.