Using the Standard Costs of $5 Per Pound for a 10

question 6

Multiple Choice

Using the standard costs of $5 per pound for a 10 pound bag of chocolate and the following actual cost and usage data,compute the direct materials variance. $$\begin{array} { l l } \text { Direct materials purchased and used } & 99,000 \text { pounds } \\\text { Price paid far direct materials } & \$ 4.00 \text { per pound } \\\text { Number of pood urits produced } & 9,000 \text { units }\end{array}$$

• A) $45,000 (F)
• B) $45,000 (U)
• C) $54,000 (F)
• D) $99,000 (F)

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