Oiner Corporation recently purchased 34,000 gallons of direct material at $5.60 per gallon. Usage by the end of the period amounted to 32,000 gallons. If the standard cost is $6.10 per gallon and the company believes in computing variances at the earliest point possible, the direct-material price variance would be calculated as:

$17,000 favourable

Explanation:

Price variance is the difference between the actual cost incurred to purchase the material and the actual quantity cost on a standard or budgeted rate of the material.As per given data

Actual Quantity = 34,000 gallon

Actual Price = $5.60

Standard cost = $6.1

Total Actual cost = 34,000 x $5.60 = $190,400

Standard cost of Actual purchase = $6.1 x 34,000 = $207,400

Direct-material price variance = Cost at standard rate - Actual Cost = $207,400 - $190,400 = $17,000

The variance is favorable as Oiner Corporation incurred less cost on a quantity purchase than the standard cost of the same quantity.

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

employers prefer to hire ingenious, resourceful people because ingenious people may be more liable to engage in unethical deportment as they can cerebrate outside of the box