[The Following Information Applies to the Questions Displayed Below

question 54

Multiple Choice

[The following information applies to the questions displayed below.]
Eagle Company uses a standard cost system that has provided the following data:

-The direct labor rate variance for the period was:

• A)$425 favorable.
• B)$360 favorable.
• C)$360 unfavorable.
• D)$425 unfavorable.

---

Definitions:

Associate Entity

An entity over which an investor has significant influence, typically through ownership of between 20% and 50% of voting stock.

Equity Recognition

The process in accounting of recognizing increases in ownership interests.

Share Capital

The funds raised by a company through the issuance of shares, representing the ownership interest invested by shareholders.

Acquisition

The process by which a company purchases most or all of another firm's shares or assets to gain control or ownership of that company.