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

question 25

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 2019, SII estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container. During July 2020, 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 manufacturing labour flexible-budget variance is

• A)$750.00 unfavourable.
• B)$262.50 favourable.
• C)$262.50 unfavourable.
• D)$487.50 favourable.
• E)$487.50 unfavourable.

Understand the concept of phantom or paper profits and their implications.

Comprehend the importance of accurate physical inventory counts and their impact on financial statements.

Familiarize with the specific identification method and its application scenarios.

Understand the process and significance of blood cell formation and differentiation.

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Definitions:

Guaranteed Payments

Guaranteed Payments are payments made by a partnership to a partner for services or capital investment, which are not dependent on the partnership's income.

Separately Stated

Items on a tax return or financial statement that are listed individually to identify their specific impact on taxation or financial analysis.

Partnership Interest

An ownership share in a partnership that represents a partial right to its assets, income, and gains.

Outside Basis

Refers to a partner's or investor's tax basis in an individual partnership interest or investment, including the initial investment amount plus any additional contributions and adjusted by allocations of income or loss and distributions.