Pardee, Inc The Standard Cost of the Direct Materials Used Was:
A)

question 97

Multiple Choice

Pardee, Inc. completed operations for the week and the accountant was preparing to make journal entries necessary to prepare a set of interim financial statements. Unfortunately, he discovered some of the data concerning direct materials had been lost. He was able to find the following: $$\begin{array} { l l } \text { Efficiency variance } & \$ 4,500 \text { Unfavourable } \\\text { Standard price } & \$ 10 \text { per unit } \\\text { Actual units purchased } & 9,000 \\\text { Inventory decrease } & 1,000 \text { units } \\\text { Budget variance } & \$ 900 \text { Favourable }\end{array}$$ The standard cost of the direct materials used was:

• A) $90,000
• B) $95,500
• C) $100,000
• D) $94,000

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