Use the Following Data That Relate to Product No

question 78

Multiple Choice

Use the following data that relate to product no. 89 of Mansion Corporation to answer the following Questions
Direct material standard: 3 square feet at $2.50 per square foot
Direct material purchased: 30,000 square feet at $2.60 per square foot
Direct material consumed: 29,200 square feet
Manufacturing activity: 9,600 units completed

Assume that the company computes variances at the earliest point in time.

-The direct-material quantity variance is:

• A) $1,000F.
• B) $1,000U.
• C) $1,040F.
• D) $1,040U.
• E) $2,000F.

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