The Standard Materials Cost to Produce 1 Unit of Product

question 210

Multiple Choice

The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the direct materials quantity variance?

• A)$47,000 unfavorable.
• B)$47,000 favorable.
• C)$50,000 unfavorable.
• D)$50,000 favorable.
• E)$3,000 favorable.

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Definitions:

Low-Income Borrowers

Individuals or households with lower income who may face greater challenges or higher costs when trying to secure loans.

Economic Analysis

The systematic approach to determining the optimal use of scarce resources, involving comparison of costs and benefits.

Land Rent

The payment made for the use of land or real estate.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.