Use the Following Information for Questions

question 27

Multiple Choice

Use the following information for questions
A company developed the following per-unit standards for its product: 5 kilograms of direct materials at $3 per kilogram.Last month, 1,000 kilograms of direct materials were purchased for $2,900.Also last month, 700 kilograms of direct materials were used to produce 135 units.
-What was the direct materials quantity variance for last month?

• A)$75 unfavourable
• B)$75 favourable
• C)$900 unfavourable
• D)$900 favourable

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Definitions:

Standard Of Care

The standard of care refers to the degree of prudence and caution required of an individual who is under a duty of care.

Faulty Grading

Refers to incorrect or misleading assignment of quality levels to goods, particularly in the context of agricultural products or land.

Tort Action

A lawsuit based on an act or omission that leads to harm or injury to another and amounts to a civil wrong for which courts impose liability.

Parking Brake

A vehicle's mechanism that locks the wheels to prevent it from moving, typically used when the vehicle is parked.