Reference: 21_01
Five Rings, Inc, Has Collected the Following Data

question 96

Multiple Choice

Reference: 21_01
Five Rings, Inc, has collected the following data on one of its products:
$\begin{array}{ll}\text { Direct materials standard (4 lbs. @ \$1/lb.) } & \$ 4 \text { per finished unit } \\\text { Total direct materials cost variance-unfavorable } & \$ 13,750 \\\text { Actual direct materials used } & 150,000 \mathrm{lbs} . \\\text { Actual finished units produced } & 30,000 \text { units }\end{array}$
-The direct materials quantity variance is:

• A) $30,000 favorable
• B) $13,750 unfavorable
• C) $16,250 favorable
• D) $30,000 unfavorable
• E) $13,750 favorable

---

Definitions:

Family Enterprise

A business organization in which decision-making and ownership are influenced by multiple generations of a family.

Certified

Official recognition that an individual, product, or organization meets the standards established by a regulatory or accrediting agency.

Benefit Corporation

A type of business structure that aims to create general public benefit in addition to generating profit for shareholders.

Stakeholder Commitment

The support and engagement of individuals or groups who have an interest in the success of a project, initiative, or organization.