The Per-Unit Standards for Direct Materials Are 2 Gallons at $4

question 152

Multiple Choice

The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month 11200 gallons of direct materials that actually cost $42400 were used to produce 6000 units of product. The direct materials quantity variance for last month was

• A) $3200 favorable.
• B) $2400 favorable.
• C) $3200 unfavorable.
• D) $5600 unfavorable.

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Definitions:

Arbitration Hearing

A dispute resolution process where an arbitrator makes a decision to resolve a dispute outside of court.

Court

A governmental institution with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters.

Authority

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Post-Appellate Procedures

The process of taking a case that has been rejected or dismissed by a domestic court to an international organization, such as the Inter-American Commission on Human Rights of the Organization of American States.