If the Direct Materials Purchased Is $200 Per Per Unit

question 143

Multiple Choice

If the direct materials purchased is $200 per per unit while the standard price for direct materials is $180, and the total direct material used is 1,000 units while the standard direct materials allowed for actual production is 980 units,

• A)The direct materials quantity variance will be favorable
• B)The direct materials quantity variance will be unfavorable
• C)The direct materials price variance will be favorable
• D)There will be no direct materials price variance

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