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

question 45

Multiple Choice

Use the information below to answer the following question(s) .
Sawyer Industries Inc. (SII) , developed standard costs for direct material and direct labour. In 2013, SII estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container.
During July, SII produced and sold 10,000 containers using 2,200 kilograms of direct materials at an average actual cost per kilogram of $24 and 1,050 direct manufacturing labour hours at an average actual wage of $14.75 per hour.
-July's direct material price variance is

• A) $2,800 favourable.
• B) $2,200 favourable.
• C) $5,000 unfavourable.
• D) $2,200 unfavourable.
• E) $2,000 favourable.

---

Definitions:

Price Elasticity

The calculation of how price alterations affect the demand level of a good.

Excise Tax

A specific type of tax levied on particular goods, services, or transactions, often included in the price of items such as gasoline, alcohol, and tobacco.

Taxable Income

The portion of an individual's or a corporation's income that is subject to taxes according to governmental regulations.

Marginal Tax Rate

The tax rate that applies to the next dollar of taxable income, indicating the percentage of any additional income that will be paid in taxes.