Pardee, Inc The Standard Quantity of Direct Materials Allowed for the Month

question 68

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: $$\begin{array} { l c } \text { Efficiency variance } & \$ 4,500 \text { Unfavourable } \\\text { Standard price } & \$ 10 \text { per unit } \\\text { Actual units purchased } & 9,000 \\\text { Inventory decrease } & 1,000 \text { units } \\\text { Budget variance } & \$ 900 \text { Favourable }\end{array}$$ The standard quantity of direct materials allowed for the month was:

• A) 10,450
• B) 9,000
• C) 10,000
• D) 9,550

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