Answer the Following Questions Using the Information Below

question 75

Multiple Choice

Answer the following questions using the information below:
Tiger O'Reilly planned to use $85 of material per unit but actually used $82 of material per unit,and planned to make 1200 units but actually made 1000 units.
-The sales-volume variance is:

• A)$2400 favourable.
• B)$2000 favourable.
• C)$17 000 unfavourable.
• D)$14 000 unfavourable.

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Definitions:

Express Authority

Authorization granted to an agent in clear, direct, and definite terms by the principal.

Implied Authority

Authority not expressly granted but assumed to be given due to the nature of a job or position.

Apparent Authority

A form of authority that an agent seems to have because of actions or representations made by the principal, leading third parties to reasonably believe the agent is authorized.

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.