The Following Data Relate to Direct Materials Costs for February

question 109

Multiple Choice

The following data relate to direct materials costs for February:
Materials cost per yard: standard, $2.00; actual, $2.10
Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards
Units of production: 9,500
Calculate the total direct materials cost variance.

• A) $9,262.50 unfavorable
• B) $9,262.50 favorable
• C) $3,780.00 unfavorable
• D) $3,562.50 favorable

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Definitions:

U.S. Farm Policy

A collection of laws and regulations that aim to support the agricultural sector in the United States through various means such as subsidies, price supports, and conservation initiatives.

Overallocation

The distribution of more resources or a larger share than is sustainable or equitable in a specific context.

Agriculture

The practice of cultivating the soil, producing crops, and raising livestock for the purpose of providing food, fiber, medicinal plants, and other products to sustain and enhance life.

Food, Conservation, And Energy Act

A federal statute focusing on agricultural and food policy, including provisions for farm subsidies, conservation efforts, and energy production.