A Company Has Established 5 Pounds of Material J at $2

question 190

Multiple Choice

A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z.The company has just produced 1,000 units of this product,using 5,200 pounds of Material J that cost $9,880.The direct materials quantity variance is:

• A)$400 unfavorable.
• B)$120 favorable.
• C)$400 favorable.
• D)$520 favorable.
• E)$520 unfavorable.

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Definitions:

Molecules

The smallest particle of a chemical substance that can exist independently while retaining the chemical properties of the substance, consisting of two or more atoms bonded together.

Atoms

Fundamental particles that make up everything, composed of a central nucleus encircled by electrons.

Radioactive Compound

A radioactive compound contains atoms that undergo spontaneous decay, emitting radiation as a result.

PET

A medical imaging technique, Positron Emission Tomography, which uses radioactive substances to visualize and measure metabolic processes in the body.