Georgia, Inc A) $30,000 Favorable

question 205

Multiple Choice

Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is: $$\begin{array} { l l } \text { Direct materials standard (4 lbs. @ \$1/16.) } & \$ 4 \text { per finished unit } \\\text { Total direct materials cost variarne - unfavorable } & \$ 13,750 \\\text { Actual direct materials used } & 150,000 \text { lbs } \\\text { Actual finished units produced } & 30,000 \text { units }\end{array}$$

• A) $30,000 favorable.
• B) $13,750 unfavorable.
• C) $16,250 favorable.
• D) $30,000 unfavorable.
• E) $13,750 favorable.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.

Stock Splits

Corporate actions that increase the number of shares outstanding, reducing the price per share but not changing the company's overall market capitalization.

Stock Dividends

Distribution of additional shares of the company's stock to shareholders instead of cash dividends.