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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Definitions:

ATP

Adenosine triphosphate, a molecule that carries energy within cells, providing the necessary power for most cellular activities.

Proteins

Large, complex molecules essential for the structure, function, and regulation of the body's cells, tissues, and organs.

Carbohydrates

Organic compounds, found in foods and living tissues, including sugars, starch, and cellulose, which are an important energy source.

Skeletal Muscle Mass

The amount of muscle attached to the skeleton, responsible for movement and strength in the body.