Pardee, Inc

question 142

Multiple Choice

Pardee, Inc. completed operations for the week and the accountant was preparing to make journal entries necessary to prepare a set of interim financial statements. Unfortunately, he discovered some of the data concerning direct materials had been lost. He was able to find the following: Efficiency variance $4,500 Unfavourable
Standard price $10 per unit
Actual units purchased 9,000
Inventory decrease 1,000 units
Budget variance $900 Favourable
The standard quantity of direct materials allowed for the month was:

• A)10,450
• B)9,000
• C)10,000
• D)9,550

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