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

question 130

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 manufacturing labour, and the direct marketing labour, respectively?

• A) $4,750 favourable; $12,500 favourable
• B) $8,000 favourable; $10,000 favourable
• C) $3,500 unfavourable; $6,750 unfavourable
• D) 3,500 favourable; $6,750 favourable
• E) $4,750 unfavourable; $12,500 unfavourable

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