A Company Provided the Following Direct Materials Cost Information $\text {Standard costs assigned:}$

question 106

Multiple Choice

A company provided the following direct materials cost information. Compute the direct materials quantity variance. $\text {Standard costs assigned:}$
$\begin{array}{llr} \text {Direct materials standard cost \( (405,000 \) units @\$2.00/unit) } & \$ 810,000\\ \text { Actual costs:} &\\ \text {Direct Materials costs incurred ( 403,750 units@\$2.20/unit) } &\$ 888,250 \end{array}$

• A) $78,250 Favorable.
• B) $2.500 Favorable.
• C) $2,750 Unfavorable
• D) $2,500 Unfavorable.
• E) $2,750 Favorable.

Identify industry trends and growth occupations in the U.S. economy.

Recognize the role of product demand in influencing labor demand.

Explain the impact of complementary and substitute resources on labor and product markets.

Understand how changes in input prices affect firms' resource allocation decisions.

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Definitions:

American

Relating to the United States of America, its people, culture, or characteristics.

Percent

A mathematical term describing a part per hundred, used to express proportions or ratios.

Intestate

Describes a person who dies without a will.

Decedent

The deceased person.