Exeter Has a Material Standard of 1 Pound Per Unit

question 71

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 it used to produce 2,350 units. What is the direct materials price variance?

• A) $1,750 unfavorable
• B) $1,300 favorable
• C) $6,300 unfavorable
• D) $5,000 unfavorable

---

Definitions:

Land

The part of the earth's surface that is not covered by water, often considered in terms of its ownership or use.

Priming

A psychological phenomenon whereby exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance.

Activation

The process in which something is prepared or initiated for use or action, often referring to physiological or neural functions.

Associations

Connections or relationships between thoughts, ideas, or concepts.