The Standard Quantity Allowed for the Units Produced Was 6,500

question 198

Multiple Choice

The standard quantity allowed for the units produced was 6,500 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $375 favorable. Each unit uses 1 pound of materials. How many units were actually produced?

• A) 6,350
• B) 6,500
• C) 15,875
• D) 6,650

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Definitions:

Units of Y

A term often used in economics and mathematics to denote a measure or quantity of a variable, typically represented on the vertical axis in graphs.

Units of X

A measure or quantity of something, especially as a standard for measurement of the same items.

Income

The money received by an individual or business in exchange for labor, services, or investment, constituting the financial gain derived from various sources over a period of time.

Budget Line

A graphical representation of all possible combinations of two goods or services that a consumer can purchase at given prices within his or her budget constraint.