Myers Corporation Has the Following Data Related to Direct Materials

question 118

Multiple Choice

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.​ The direct materials quantity variance is

• A)$1,020 favorable
• B)$1,020 unfavorable
• C)$900 favorable
• D)$900 unfavorable

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Definitions:

Lost Profits

Income that a business does not receive due to disruptions, such as breaches of contracts or other damages, which could have been earned if the disruption had not occurred.

Property Insurance

A type of insurance policy that provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft.

Actual Value

The true or fair market value of an asset or property.

High Premium

An insurance policy or financial product cost that is significantly above average, often reflecting higher risk or greater coverage.