The Standard Materials Cost to Produce 1 Unit of Product

question 13

Multiple Choice

The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the total direct materials cost variance?

• A)$48,000 unfavorable.
• B)$51,000 favorable.
• C)$51,000 unfavorable.
• D)$3,000 favorable.
• E)$3,000 unfavorablE.

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Definitions:

Proportion

A part or fraction of a whole, often expressed as a percentage or decimal.

Upper Limit

The maximum value in a range or set, beyond which no observations in the data set fall or are allowed.

Relative Frequency Distribution

A tabular summary of data showing the fraction or proportion of observations in each of several nonoverlapping categories or classes.

Fraction

A mathematical expression representing the division of one number by another, denoting part of a whole.