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

question 80

Multiple Choice

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month, 1,000 pounds of direct materials were purchased for $3,800. The direct materials price variance for last month was

• A) $3,800 favorable.
• B) $200 favorable.
• C) $100 favorable.
• D) $200 unfavorable.

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