During September,40,000 Units Were Produced

question 57

Multiple Choice

During September,40,000 units were produced.The standard quantity of material allowed per unit was 5 kilograms at a standard cost of $2.50 per kilogram.If there was a favourable usage variance of $25,000 for September,what would have been the actual quantity of materials used?

• A)95,000 kilograms
• B)105,000 kilograms
• C)190,000 kilograms
• D)210,000 kilograms

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Definitions:

Closed Economy

An economic system that does not engage in international trade, relying solely on its own internal markets.

Taxes Minus Transfers

The net fiscal contribution of an individual or sector, calculated by subtracting government transfers received from taxes paid.

Private Saving

The portion of individuals' or households' income that is not used for consumption or paying taxes and is instead saved.

Closed Economy

An economic system that does not engage in international trade but relies entirely on its own resources and production.