Reference: 21_01
Five Rings, Inc, Has Collected the Following Data

question 96

Multiple Choice

Reference: 21_01
Five Rings, Inc, has collected the following data on one of its products:
$\begin{array}{ll}\text { Direct materials standard (4 lbs. @ \$1/lb.) } & \$ 4 \text { per finished unit } \\\text { Total direct materials cost variance-unfavorable } & \$ 13,750 \\\text { Actual direct materials used } & 150,000 \mathrm{lbs} . \\\text { Actual finished units produced } & 30,000 \text { units }\end{array}$
-The direct materials quantity variance is:

• A) $30,000 favorable
• B) $13,750 unfavorable
• C) $16,250 favorable
• D) $30,000 unfavorable
• E) $13,750 favorable

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Definitions:

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