Gipple Corporation Makes a Product That Uses a Material with the Quantity

question 149

Multiple Choice

Gipple Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24,870 grams of the direct material. During the month the company purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for January is:

• A) $2,482 Favorable
• B) $2,740 Unfavorable
• C) $2,482 Unfavorable
• D) $2,740 Favorable

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Definitions:

Passive Participants

Individuals or entities that engage in activities or events with minimum contribution or interaction, often observing or receiving information without active response or involvement.

Ryerson University

A public research university located in Toronto, Ontario, Canada, known for its innovative and career-focused education programs.

Psychographic Segmentation

A market research analysis technique that divides consumers into segments based on psychological traits such as attitudes, interests, and lifestyles.

Personality

The characteristic set of behaviors, cognitions, and emotional patterns that evolve from biological and environmental factors, distinguishing one person from another.