A Company Provided the Following Direct Materials Cost Information

question 111

Multiple Choice

A company provided the following direct materials cost information.Compute the cost variance.

• A)$2,500 Favorable.
• B)$78,250 Favorable.
• C)$78,250 Unfavorable.
• D)$80,750 Favorable.
• E)$80,750 UnfavorablE.Actual cost $888,250 - Standard cost $810,000 = $78,250 U

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Definitions:

Embrace Problems

The mindset of viewing challenges and difficulties as opportunities for growth, learning, and innovation rather than obstacles to be avoided.

Surprise

A sudden and often unexpected event that necessitates an immediate and adaptative response from the affected parties.

Inertia

In physics, the tendency of an object to resist any change in its motion, including a change in speed or direction; in a figurative sense, a resistance to change or action.

Poor Timing

Instances where actions or decisions are made too early or too late, leading to suboptimal outcomes.