The Following Materials Standards Have Been Established for a Particular

question 449

Multiple Choice

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month:
The direct materials purchases variance is computed when the materials are purchased.What is the materials quantity variance for the month?

• A) $4,312 Unfavorable
• B) $13,315 Unfavorable
• C) $23,160 Unfavorable
• D) $7,500 Unfavorable

---

Definitions:

Specialization

The focus of a business or individual on a limited scope of products or skills, allowing for increased efficiency and expertise.

Total Cost Curve

A graphical representation showing the total cost associated with producing varying quantities of output, illustrating economies or diseconomies of scale.

Short Run

A time frame in economics during which at least one factor of production is fixed, limiting the ability of the economy or a firm to adjust to changes.

Fixed Costs

Expenses that remain constant regardless of the volume of production or sales, like lease payments or wages.