<span>An outstanding check is a check issued by the payor
and released to the payee that remains to be undeposited or uncashed check at a
certain financial period. When reconciling the bank statements with company
books, an outstanding check is deducted from the unadjusted bank balance to
arrive at the adjusted bank balance. </span>
Minimum of 2 years word experience. :)
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.
