Following Is the Shareholders' Equity Section of the Balance Sheet

question 29

Multiple Choice

Following is the shareholders' equity section of the balance sheet of the Everslim Company: Share capital:
Preferred shares,420,000 shares authorized,
Common shares,100,000 shares authorized,
The preferred shares are currently selling for $102.25 per share and the common shares are currently selling for $11.50 per share.
The total share capital after the distribution of a $66,000 dividend is:

• A) $400,000
• B) $150,000
• C) $550,000
• D) $817,000

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Definitions:

Raw Materials Price Variance

The difference between the actual cost and the standard cost of raw materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount of materials that should have been used, measured at the standard cost.

Labor Efficiency Variance

The deviation between the actual hours taken to produce a unit of output and the standard hours expected, multiplied by the standard labor rate.

Materials Price Variance

The difference between the actual cost of direct materials and the expected cost at standard prices.