The Following Data Relate to Direct Materials Costs for February

question 9

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 direct materials quantity variance.

• A) $4,512.50 unfavorable
• B) $4,512.50 favorable
• C) $4,750.00 unfavorable
• D) $4,750.00 favorable

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Definitions:

Goal Congruence

The alignment of individual objectives and behaviors with the overall goals and direction of the organization, aiming for harmony and unified effort.

Organisation Goals

The aims or targets that an organization seeks to achieve, which guide its overall strategy and direction.

Manager's Behaviour

The actions, strategies, and practices employed by a manager in guiding, leading, and managing a team or an organization.

Service Level Agreements

Formal contracts between service providers and customers that outline the level of service expected, including timelines and quality benchmarks.