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

---

Definitions:

Closeout

The final phase of a project where all activities are completed, documents are finalized, and the project is officially concluded.

Project Documents

Comprehensive collection of documents that cover all aspects of a project from initiation to closure, including plans, reports, and correspondence.

Archived

Describes the process of storing records, documents, or data in a secure location for long-term preservation and future reference.

Closeout

The final phase in a project where tasks are completed, documents are finalized, and the project is formally closed.