The Following Company Information Is Available for January The Direct Material Quantity Variance Is:
A) $5,000 Favorable
B)

question 58

Multiple Choice

The following company information is available for January:
$$\begin{array} { l l } \text { Direct materials used } & 2,500 \text { feet @ \$55 per foot } \\\text { Standard costs for direct materials for January } & 2,600 \text { feet } @ \$ 53 \text { per foot } \\\text { production } &\end{array}$$
The direct material quantity variance is:

• A) $5,000 favorable
• B) $300 favorable
• C) $5,300 unfavorable
• D) $5,000 unfavorable
• E) $5,300 favorable

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Definitions:

Market Share

The fraction of the total industry output accounted for by a given producer’s output.

Economic Profits

Profit that exceeds both the total explicit and implicit costs, often signaling above-normal returns in competitive markets.

Optimal Level

The most efficient, effective, or desirable point or degree for a specific outcome or condition.

Monopolistically Competitive

Pertains to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.