Parallel Enterprises Has Collected the Following Data on One of Its

question 138

Multiple Choice

Parallel Enterprises has collected the following data on one of its products.During the period the company produced 25,000 units.The direct materials price variance is:

• A)$27,500 unfavorable.
• B)$50,000 unfavorable.
• C)$50,000 favorable.
• D)$22,500 unfavorable.
• E)$22,500 favorable.

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Definitions:

Capital

Financial resources or assets owned by an individual or business that are useful in furthering development or generating income.

Operating Costs

Expenses directly related to the day-to-day functioning of a business, excluding costs associated with financing or investments.

Preferred Dividends

Payments made to preferred shareholders before common shareholders receive any dividends.

After-Tax Income

The net income an individual or corporation receives after all income taxes have been deducted from gross income.