Answer:
A. The company paid a higher cost for the direct materials than allowed by the standards.
Explanation:
The following is a logical explanation for this variance:
Since, the standard quantity of raw materials to be used is 22 pounds x 500 units = 11000 pounds. The actual usage is 9500 pounds ony. Hence, variance in direct material price variance can be only due to higher cost of direct material purchased.
An inner tube for a swimming pool would be in high demand during the summer months, and in incredibly low demand in the winter months.
Answer:
(receive higher wages that reflect an increase in their value of marginal product.)