Jackson Industries Has Collected the Following Data for One of Its

question 139

Multiple Choice

Jackson Industries has collected the following data for one of its products:

How much is the direct materials quantity variance?

• A)$78,550 favorable
• B)$27,940 unfavorable
• C)$66,550 favorable
• D)$78,550 unfavorable

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Definitions:

Lead Time

The amount of time that elapses between the initiation and completion of a process, such as the time from placing an order to delivery.

Backup Supplier

A secondary source for goods or materials, used in case the primary supplier fails to deliver, to ensure continuity of supply in the production or distribution process.

Volume-Based

A pricing or measurement approach relying on the amount of goods sold or produced.

Efficient Facility

A production or service site designed to maximize productivity and reduce waste, costs, and inefficiency through optimal use of resources and technology.