Exeter Has a Material Standard of 1 Pound Per Unit

question 61

Multiple Choice

Exeter has a material standard of 1 pound per unit of output.Each pound has a standard price of $26 per pound.During July,Exeter paid $66,100 for 2,475 pounds,which they used to produce 2,350 units.What is the direct materials quantity variance?

• A)$1,750 unfavorable
• B)$1,300 favorable
• C)$3,250 unfavorable
• D)$4,550 unfavorable

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Definitions:

Price Level

The economy's wide-ranging average of prices for every produced good and service.

Price Level

An index of the average price of goods and services in an economy over a period, indicating inflation or deflation.

Exchange-Rate Effect

The impact of changes in the relative value of currencies on the economy, affecting import and export prices, investment flows, and overall economic performance.

Aggregate Demand

The full volume of demand for goods and services in an economy, priced at a particular level, within a designated period.