A Company Had a $56,000 Unfavorable Direct Material Quantity Variance

question 154

Multiple Choice

A company had a $56,000 unfavorable direct material quantity variance during a time period when the standard price per pound of direct material was $7 and the actual price per pound of direct material was $7.50.If the standard quantity of direct material allowed for production was 52,000 pounds,how many pounds of direct material were actually used during this period?

• A) 60,000 pounds
• B) 44,000 pounds
• C) 56,000 pounds
• D) 364,000 pounds
• E) 420,000 pounds

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Definitions:

Surrogation

The substitution of a performance measure (or target) for the strategy or objective it was intended to assess, potentially misaligning organizational goals.

Performance Metrics

Quantitative measures used to assess, compare, and track performance or production over time.

Strategic Objectives

Targets or goals that an organization aims to achieve, which are designed to further its long-term interests.

CSR Efforts

Corporate social responsibility efforts entail voluntary activities undertaken by a company to operate in an economic, social, and environmentally sustainable manner.