The doctrine of promissory estoppel can be defined as . A. a contract in which a buyer agrees to purchase all of its requirements for an item from one seller B. a contract where the seller agrees to sell all of its production to a single buyer C. an agreement whereby the parties agree to accept something different in satisfaction of the original contract D. an equitable doctrine that prevents the withdrawal of a promise by a promisor if it will adversely affect a promisee who has adjusted his or her position in justifiable reliance on the promise E. a contract which contains a clause that requires one or both of the parties to use their best efforts to achieve the objective of the contrac

D. an equitable doctrine that prevents the withdrawal of a promise by a promisor if it will adversely affect a promisee who has adjusted his or her position in justifiable reliance on the promise

Explanation:

A promissory estoppel defines that it is a doctrine when a person will not be able to go back from a promise even if it is a legal contract. It secured against the financial security.

According to the given situation as we discussed above if there is a effect on promisor the promisor can not withdraw which means it prevents an equitable doctrine who is trying to who adjust his position on the commitment in a justifiable way.

Answer and Explanation:

ParticularsAmount

Standard variable manufacturing overhead cost for march$960

Standard variable manufacturing overhead rate per direct labor hour$2

Standard direct labor hours for march

=960/2

= $ 480

Standard direct labor rate per hour

=$ 5,040/$480

= $ 10.5

The labor efficiency variance

Actual Cost per unit of back pack production

=(9,120+5,040+960)/(400)

=15,120/400

=$ 37.8

Total Number of produced Back packs 400

Total Actual cost of production $ 15,120

Less: Actual cost of materials$5,520

Actual cost of manufacturing Overhead2,620

Actual cost of Direct Labor6,980

Labor efficiency varaince= 5040-6980= -$ 1940

Variable overhead rate variance=(Actual Hour*Actual Rate)-(Actual Hour of input*Standard Rate)

=(2620*2)

= $ 5240

Variable overhead rate variance = $ 5240