Acting Company Has the Following Information Required:
A

question 169

Essay

Acting Company has the following information: $$\begin{array} { l l l } \text { Direct Materials: } & \text { Direct Labour: } & \\\text { Standard Quantity 11,000 } & \text { Standard Hours } & 3,000 \\\text { Actual Quantity 13,000 } & \text { Actual Hours } & 2,875 \\\text { Standard Price } \$ 15 & \text { Standard Rate } & \$ 12 \\\text { Actual Price } \$ 13 & \text { Actual Rate } & \$ 13\end{array}$$ Required:
A. Determine the materials price variance and whether it is favourable or unfavourable.
B. Determine the materials usage variance and whether it is favourable or unfavourable.
C. Determine the labour rate variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

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Definitions:

Incentive Function

The role of incentives in influencing the behavior and decisions of individuals or organizations.

Competitive Markets

Markets characterized by a large number of buyers and sellers, where no single entity controls the market prices.

Resource

Any physical or virtual entity of limited availability that needs to be consumed to obtain a benefit, including natural resources, human resources, and financial resources.