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

question 87

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:

Organizational Performance

The analysis of a company's performance in terms of revenue, profit, growth, and effectiveness in achieving its goals.

Formal Leadership

Leadership within an organization that is established by one's position within the organizational hierarchy, often involving officially designated responsibilities and authority.

Ethical Issue

A situation or decision that involves conflicts between moral imperatives, where choosing one may result in transgressing another.

Inaction

The lack of action or delay in responding to a situation, often resulting in negative outcomes or missed opportunities.