Answer the Following Question(s)using the Information Below

question 113

Multiple Choice

Answer the following question(s) using the information below.Apple Valley Orchards, Inc.(AVO) , developed standard costs for direct material and direct labour.In 2019, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. During September 2020, AVO produced and sold 1,200 pies using 1,875 kilograms of direct materials at an average cost per kilogram of $7.00 and 280 direct labour hours at an average wage of $14.25 per hour.
-September's direct material efficiency variance is

• A)$468.75 unfavourable.
• B)$525.00 favourable.
• C)$525.00 unfavourable.
• D)$543.75 favourable.
• E)$543.75 unfavourable.

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Definitions:

Checkroom

A place where visitors can deposit their personal belongings, such as coats and bags, for safekeeping.

Bailment

The act of placing property into the temporary custody or care of another, typically under an agreement for a specific purpose.

Damages

Monetary compensation ordered by a court for harm or injury suffered by an individual.

Ordinary Care

The level of caution and attention to duty that a reasonable person would employ in similar circumstances, often relevant in negligence cases.