The Standard Costs and Actual Costs for Direct Materials for the Manufacture

question 142

Multiple Choice

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are The amount of direct materials price variance is

• A)$2,750 unfavorable variance
• B)$2,750 favorable variance
• C)$1,500 favorable variance
• D)$1,500 unfavorable variance

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Definitions:

Real Property

Real property includes land and anything permanently attached to it, like buildings, in contrast with personal property, which is movable.

Personal Property

Assets that are movable and not fixed to one location, such as furniture, vehicles, and equipment, contrary to real estate.

Demonstrative Legacy

A specific bequest in a will, directing a particular sum of money to be paid out of a specified asset or fund.

Probate

The legal process through which a deceased person's will is validated, and their assets are distributed under the supervision of a court.