The Following Company Information Is Available for January The Direct Material Price Variance Is:
A)$5,000 Favorable
B)$ 300

question 144

Multiple Choice

The following company information is available for January:
$\begin{array}{llcc} \text { Direct materials used } & \text { 2,500 feet @ \$ 55 per foot } \\ \text { Standard costs for direct materials for January } & \text { 2,600 feet @ \$53 per foot } \\ \text { production } \\\end{array}$

The direct material price variance is:

• A)$5,000 favorable
• B)$ 300 favorable
• C)$5,300 unfavorable
• D)$5,000 unfavorable
• E)$5,300 favorable

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Definitions:

Commission of a Tort

The act of committing a wrongful act, excluding breach of contract, for which a civil action can be brought.

Respondeat Superior

A doctrine under which a principal-employer is liable for any harm caused to a third party by an agent-employee in the course or scope of employment.

Apparent Authority

Apparent authority refers to a situation in which a person appears to be given power to act on behalf of another, thereby binding the principal through the agent's actions, even if the actual authority has not been granted.

Misrepresentation

The act of providing false or misleading information, intentionally or unintentionally, in a transaction.