Select the Correct Statement from the Following,assuming Carmichael Company Had

question 55

Multiple Choice

Select the correct statement from the following,assuming Carmichael Company had a favorable direct materials price variance of $3,000 and an unfavorable direct materials usage variance of $2,000.

• A) The total direct materials variance is $1,000 unfavorable.
• B) The total direct materials variance is $5,000 favorable.
• C) The total direct materials variance is $5,000 unfavorable.
• D) The total direct materials variance is $1,000 favorable.

---

Definitions:

Personal Assets

Items of economic value owned by an individual, which can include tangible items like property and vehicles or intangible assets.

Proprietorship

A business structure owned by a single individual where there's no legal distinction between the owner and the business entity.

Legal Dissolution

The process of legally dissolving a company, terminating its existence by the law.

New Partner

An individual who joins an existing partnership, contributing capital, and sharing in profits, losses, and liabilities.