A Company Provided the Following Direct Materials Cost Information

question 187

Multiple Choice

A company provided the following direct materials cost information. Compute the total direct materials cost variance.

• A) $2,500 Favorable.
• B) $78,250 Favorable.
• C) $78,250 Unfavorable.
• D) $80,750 Favorable.
• E) $80,750 Unfavorable.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price within a specific time period.

Equilibrium Prices

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to a stable market condition where there is no tendency for change.

Seating Capacity

The number of people who can be accommodated in a space, such as a vehicle, room, or venue, based on the available seats.