The Standard Materials Cost to Produce One Unit of Product

question 83

Multiple Choice

The standard materials cost to produce one unit of Product M is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the total direct material cost variance?

• A) $48,000 unfavorable
• B) $51,000 favorable
• C) $51,000 unfavorable
• D) $ 3,000 favorable
• E) $ 3,000 unfavorable

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Definitions:

Predominant Purpose

The main aim or objective behind an action, agreement, or legal interpretation.

Price Terms

Conditions and details regarding the cost of goods or services being offered or negotiated, including payment amounts, schedules, and any potential for adjustments.

Sales Contract

A formal agreement between a buyer and seller specifying the terms and conditions under which goods or services will be sold and purchased.

Fixed Price

A set price that does not change, regardless of variations in market conditions or costs of production.