-What Was the Materials Price Variance for the Month?
A)

question 211

Multiple Choice

$\begin{array}{l}\text { The following materials standards have been established for a particular product: }\\\begin{array} { | l | r | } \hline \text { Standard quantity per unit of output } & 6.8 \text { metres } \\\hline \text { Standard price } & \$ 17.10 \text { per metre } \\\hline\end{array}\end{array}$
$\begin{array}{l}\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | r | } \hline \text { Actual materials purchased } & 9,000 \text { metres } \\\hline \text { Actual cost of materials purchased } & \$ 156,600 \\\hline \text { Actual materials used in production } & 8,500 \text { metres } \\\hline \text { Actual output } & 1,200 \text { units } \\\hline\end{array}\end{array}$
-What was the materials price variance for the month?

• A) $2,550 favourable.
• B) $2,550 unfavourable.
• C) $2,700 favourable.
• D) $2,700 unfavourable.

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Definitions:

Rich-Country Standards

The benchmarks or norms established by wealthy countries for quality of life, economic performance, and governance.

Optimal Resource Allocation

The most efficient distribution of resources in an economy, achieving the best possible balance of production and distribution to meet the needs and wants of the population.

ITQs

Individual Transferable Quotas, a system in resource management where individuals or companies have the right to a portion of the total allowable catch or quota.

Least Costly Way

The most efficient method of achieving a desired outcome or producing a good or service, minimizing expenses while meeting specified objectives.