A Company Developed the Following Per-Unit Standards for Its Product

question 14

Multiple Choice

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month 1500 pounds of direct materials were purchased for $5700. The direct materials price variance for last month was

• A) $5700 favorable.
• B) $300 favorable.
• C) $150 favorable.
• D) $300 unfavorable.

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Definitions:

NAICS

The North American Industry Classification System, which organizes business establishments by their type of economic activity.

Women Owning Business

Refers to enterprises that are majority-owned by women, showcasing gender diversity in entrepreneurship.

Hispanic-Owned Businesses

Enterprises owned and operated by individuals of Hispanic heritage, contributing to the economic diversity and development.

Annual Revenue

The total amount of income generated by a company from its activities over a year before any costs or expenses are deducted.