If the Actual Price of Direct Materials Purchased Is $200

question 87

Multiple Choice

If the actual price of direct materials purchased is $200 per unit while the standard price for direct materials is $180 per unit and the total direct material used is 1,000 units while the standard direct materials allowed for actual production is 1,200 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)The direct materials price variance will be unfavorable

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Definitions:

Extra Revenue

Additional income generated beyond the expected or standard financial projections for a business or organization.

Specialized Systems

Custom or tailored technological systems designed to meet specific requirements or perform unique tasks in various industries or fields.

Needs Analysis

The process of determining and addressing the needs or gaps between current conditions and desired conditions or performances.

Culture

The shared values, beliefs, norms, and practices that characterize a group of people or an organization.