Figure 7 Orient Company Has Developed the Following Standards for One of One

question 62

Multiple Choice

Figure 7
Orient Company has developed the following standards for one of its products:
The following activities occurred during the month of November:
The company records materials price variances at the time of purchase.

-Refer to Figure 7. Orient's variable overhead spending (expenditure) variance would be

• A) £4,800 favorable
• B) £4,800 unfavorable
• C) £3,600 unfavorable
• D) £1,200 unfavorable

---

Definitions:

Social Security Payments

These are government payments made to qualifying individuals, such as the elderly or disabled, to help support their income.

Indexed

Adjusted or linked to a specific index or a standard measurement, commonly used to maintain purchasing power or adjust for inflation.

Price Index

A statistical measure that examines the weighted average of prices of a selected basket of goods and services over a period, used to track inflation or deflation.

Social Security Payments

Government-provided financial assistance to people with inadequate or no income, especially the elderly or disabled.