Boxes Company Has Collected the Following Data for One of Its

question 2

Multiple Choice

Boxes Company has collected the following data for one of its products: How much is the direct materials efficiency variance?

• A)$11,000 unfavorable
• B)$11,000 favorable
• C)$25,000 unfavorable
• D)$25,000 favorable

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Definitions:

Units

Basic quantities or measurements used as standards for expressing and comparing the quantity of physical properties.

Tax

Tax refers to a compulsory financial charge or some other type of levy imposed upon a taxpayer by a government organization in order to fund government spending and various public expenditures.

Good

An item or product that satisfies a want or need and can be transferred to others.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing their gain from the transaction.