The Standard Materials Cost to Produce 1 Unit of Product

question 210

Multiple Choice

The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the direct materials quantity variance?

• A)$47,000 unfavorable.
• B)$47,000 favorable.
• C)$50,000 unfavorable.
• D)$50,000 favorable.
• E)$3,000 favorable.

Grasp the advantages and disadvantages of classroom training.

Understand the principle and effectiveness of mentoring in the workplace.

Understand the critical role and process of orientation for new employees.

Identify the effectiveness and purposes of different coaching techniques.

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Definitions:

Merchandise Inventory

Goods that a retail or wholesale company holds for sale to customers in the ordinary course of business.

Budgeted Balance Sheet

A financial statement that projects the financial position of a company at a future date, estimating assets, liabilities, and equity based on anticipated financial activities and plans.

Variable Operating

Refers to operating expenses that vary in direct proportion to changes in an organization's level of activity or volume.

Fixed Expenses

Costs that do not change with the volume of production or sales, such as rent, salaries, and insurance.