Answer the Following Question(s)using the Information Below

question 59

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 labour rate variance is

• A)$75.00 unfavourable.
• B)$75.00 favourable.
• C)$70.00 unfavourable.
• D)$70.00 favourable.
• E)$90.00 unfavourable.

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Definitions:

Cement Manufacturer

A business involved in the production and sale of cement, a key ingredient in concrete.

Margin Of Safety

The difference between the actual or expected profitability of a project and the break-even point, often used as a risk assessment measure.

Contribution Format

An income statement format that separates fixed and variable costs, highlighting the contribution margin.

Income Statement

An accounting document reflecting a business's earnings, outlays, and gains for a particular period.