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

question 201

Multiple Choice

A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon. Last month 3000 gallons of direct materials were purchased for $22800. The direct materials price variance for last month was

• A) $22800 favorable.
• B) $600 favorable.
• C) $1200 favorable.
• D) $1200 unfavorable.

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Definitions:

Warm Up

The practice of preparing the body for physical activity by gradually increasing the heart rate and circulation; this also loosens the joints and increases blood flow to the muscles.

Stretching

A form of physical exercise aimed at improving flexibility and muscle elasticity by lengthening specific muscles or tendons.

Sex Differences

Variations in characteristics, behaviors, or conditions between males and females, often influenced by biological, psychological, or social factors.

Flexibility

The ability of a joint or series of joints to move through an unrestricted, pain-free range of motion.