-Calculate the Direct Materials Quantity Variance

question 125

Multiple Choice

-Calculate the direct materials quantity variance.

• A) $4,512.50 unfavorable
• B) $4,512.50 favorable
• C) $4,750.00 unfavorable
• D) $4,750.00 favorable

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Definitions:

Variable Distribution Costs

Expenses related to the delivery or distribution of a product that vary in proportion to the volume of units sold.

Contribution Margin

The amount remaining from sales revenue after variable production costs and variable expenses have been deducted; used to cover fixed costs and to generate profit.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment, product, or operation and would disappear if the segment was discontinued.

Common Fixed Expenses

Fixed costs that are not directly attributable to a specific product or service line and must be paid regardless of the level of production or sales.