The Per-Unit Standards for Direct Materials Are 2 Pounds at $4

question 133

Multiple Choice

The per-unit standards for direct materials are 2 pounds at $4 per pound. Last month, 11,200 pounds of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was

• A) $3,200 favorable.
• B) $2,400 favorable.
• C) $3,200 unfavorable.
• D) $5,600 unfavorable.

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Definitions:

Emigration

The act of leaving one's resident country or region with the intent to settle elsewhere.

Total Output

Total output is the overall quantity of goods or services produced by a company, sector, or economy within a certain period.

Labor Cost

The total sum of all wages paid to employees, as well as the costs of employee benefits and payroll taxes paid by an employer.