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

question 52

Multiple Choice

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows: The amount of direct materials price variance is:

• A) $2,250 unfavorable
• B) $1,950 favorable
• C) $1,875 favorable
• D) $1,950 unfavorable

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Definitions:

Coefficient

A fixed number or constant that precedes and multiplies the variable in an algebraic term.

Unit Change

A change or difference of 1 unit in the value of a variable.

MSR

A term that could refer to various specific metrics or identifiers depending on the context; without further context, a precise definition cannot be provided. NO.

Degrees of Freedom

Represents the number of independent values or quantities that can be assigned to a statistical distribution, affecting the calculation of various statistical tests.