The Following Company Information Is Available for January The Direct Material Price Variance Is:
A) $5,000 Favorable
B)

question 55

Multiple Choice

The following company information is available for January:
$$\begin{array} { l l } \text { Direct materials used } & 2,500 \text { feet @ \$55 per foot } \\\text { Standard costs for direct materials for January } & 2,600 \text { feet } @ \$ 53 \text { per foot } \\\text { production } &\end{array}$$
The direct material price variance is:

• A) $5,000 favorable
• B) $ 300 favorable
• C) $5,300 unfavorable
• D) $5,000 unfavorable
• E) $5,300 favorable

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Definitions:

Accounts Payable

Money owed by a business to its suppliers for goods or services that have been delivered or used but not yet paid for.

Accounts Receivable

Debts owed by clients to a corporation for items or services that have been supplied but are still unpaid.

Fees Earned

Revenue generated from professional services provided, often used in accounting for law firms, consulting businesses, and other service providers.

Cash

Money in the form of bills or coins, immediately available for transactions or expenditure.