Answer the Following Question(s)using the Information Below

question 113

Multiple Choice

Answer the following question(s) using the information below.Apple Valley Orchards, Inc.(AVO) , developed standard costs for direct material and direct labour.In 2019, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. During September 2020, AVO produced and sold 1,200 pies using 1,875 kilograms of direct materials at an average cost per kilogram of $7.00 and 280 direct labour hours at an average wage of $14.25 per hour.
-September's direct material efficiency variance is

• A)$468.75 unfavourable.
• B)$525.00 favourable.
• C)$525.00 unfavourable.
• D)$543.75 favourable.
• E)$543.75 unfavourable.

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Definitions:

Multiple Products

Refers to a range of different products offered by a company, aimed at catering to varying customer needs and market segments.

Customers' Needs

The requirements or desires that clients seek to fulfill with products or services.

Manufacturer's Profits

The net income a manufacturing company earns after deducting all of its operating expenses from its revenue.

Cannibalization

The reduction in sales of a product as a result of the introduction of a similar product by the same company.