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

question 156

Multiple Choice

The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: The amount of the direct materials quantity variance is:

• A) $875 favorable
• B) $800 unfavorable
• C) $800 favorable
• D) $875 unfavorable

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Definitions:

International Banking Institution

A financial entity operating across national borders, dealing in currency exchange, foreign investment, and international loans.

Government Financing Institution

A state-owned or government-backed entity that provides financial services, including loans and guarantees, to support economic development.

Commercial Letter

a written document used in business transactions, often to communicate formally between companies or organizations.

Cash Advance

A short-term loan or credit card feature allowing individuals to withdraw cash up to a certain limit, often subject to high interest rates and fees.