) Saskatoon Company Uses Two Raw Materials, a and B

question 138

Multiple Choice

) Saskatoon Company uses two raw materials, A and B, in the manufacture of its only product: Zizbo. The materials are very close substitutes. The standard proportions for the manufacture of a unit of Zizbo are 2 units of A and 3 units of B. The unit standard prices of A and B are $10 and $8, respectively. During the month of August, the company used 450 units of A and 750 units of B to produce 230 units of Zizbo.
-What were the direct materials quantity variances for raw materials A and B,respectively?

• A) $100 favourable and $480 unfavourable.
• B) $200 unfavourable and $240 unfavourable.
• C) $300 favourable and $240 unfavourable.
• D) $480 unfavourable and $100 favourable.

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