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

question 146

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

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Definitions:

Dairy

A type of agricultural production that involves the harvesting of milk from mammals, primarily cows, goats, sheep, and camels, for human consumption.

Distribution Channels

Pathways through which products or services flow from the manufacturer to the consumer, including intermediaries like wholesalers and retailers.

Chobani Yogurt

A brand of Greek yogurt known for its use of natural ingredients and processes, and for initiating the popularity of Greek yogurt in the United States.

Vending Machines

Automated machines that dispense goods such as snacks, beverages, and tickets to consumers after payment.