Use the Information Below to Answer the Following Question(s)

question 65

Multiple Choice

Use the information below to answer the following question(s) .
Tractor Corporation produces toy tractors. The company uses the following direct cost categories:
Actual performance and budgeted performance for the company is shown below:
Direct Materials:
Direct Manufacturing Labour:
Direct Marketing Labour:

-What is the price variance of the direct materials?

• A) $10,000 favourable
• B) $11,500 unfavourable
• C) $11,500 favourable
• D) $10,000 unfavourable
• E) $11,000 favourable

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Definitions:

New Deal Philosophy

The set of government policies introduced by President Franklin D. Roosevelt in the 1930s to recover from the Great Depression.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation, communication, sewage, water, and electric systems necessary for a society to function.

Banking Crisis

A financial crisis that occurs when many banks suffer simultaneous runs, leading to insolvency or prompting government intervention.

Roosevelt

A surname associated with two prominent American presidents, Theodore Roosevelt and Franklin D. Roosevelt, who served in the early and mid-20th century, respectively.