Myers Corporation Has the Following Data Related to Direct Materials

question 50

Multiple Choice

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $​4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.​What is the direct materials quantity variance?

• A) ​$1,020 favorable
• B) ​​$1,020 unfavorable
• C) ​$900 favorable
• D) ​$900 unfavorable

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Definitions:

Equilibrium Quantity

Supply and demand volume of goods or services at the price where equilibrium is achieved.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand forces.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

Quantity Supplied

The total amount of a particular good or service that producers are willing to provide at a given price.