The Following Information Is Provided by the Atlas Company: What

question 10

Multiple Choice

The following information is provided by the Atlas Company: What is the direct material price variance?
$$\begin{array} { | l | l | } \hline \text { Actual direct material cost } & \$ 20,000 \\\hline \text { Standard direct material cost } & \$ 24,000 \\\hline \text { Direct material usage variance } & \$ 3,000 \text { favorable }\\\hline\end{array}$$

• A)$1,000 favorable
• B)$1,000 unfavorable
• C)$5,000 unfavorable
• D)Not enough information is provided

Understand the representation of data through standard deviation and mean.

Analyze and solve problems involving inequalities and their applications.

Understand the concept of political risk and how it affects firms' investments in foreign countries.

Distinguish between different financial instruments and markets, such as foreign bonds, Eurobonds, and Eurodollar transactions.

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Definitions:

Debit

An accounting entry that increases an asset or expense or decreases a liability, equity, or revenue.

Credit

A financial term defining the ability to obtain goods or services before payment, based on the trust that payment will be made in the future.

Underapplied Overhead

A situation where the applied manufacturing overhead is less than the actual manufacturing overhead costs incurred.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or products.