Based on the Following Information, Calculate the Direct Materials Quantity

question 39

Multiple Choice

Based on the following information, calculate the direct materials quantity variance. $$\begin{array} { l l } \text { Actual quantity } & 2,500 \text { pounds at } \$ 6.00 \\\text { Standard quantity } & 2,900 \text { pounds at } \$ 5.50\end{array}$$ ?

• A) $2,250 unfavorable
• B) $2,200 favorable
• C) $2,500 favorable
• D) $2,700 unfavorable

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Definitions:

Maturity Stage

A phase in the product life cycle or business growth where growth stabilizes and the product or business experiences minimal changes.

Introduction Stage

The first phase of a product life cycle, characterized by initial product launch, slow sales growth, and marketing efforts to build awareness.

Introduction Stage

The initial phase of a product's life cycle, characterized by low sales growth as the product is being introduced to the market.

Decline Stage

The phase in a product's life cycle characterized by a decrease in sales and profitability, indicating the product is nearing the end of its market life.