If the Actual Price of Direct Materials Purchased Is $200

question 17

Multiple Choice

If the actual price of direct materials purchased is $200 per unit while the standard price for direct materials is $180 per unit and the total direct material used is 1,000 units while the standard direct materials allowed for actual production is 1,200 units,

• A)the direct materials quantity variance will be favorable
• B)the direct materials quantity variance will be unfavorable
• C)the direct materials price variance will be favorable
• D)the direct materials price variance will be $0.

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