The Standard Materials Cost to Produce 1 Unit of Product

question 7

Multiple Choice

The standard materials cost to produce 1 unit of Product M is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. What is the total direct materials cost variance?

• A) $48,000 unfavorable.
• B) $51,000 favorable.
• C) $51,000 unfavorable.
• D) $3,000 favorable.
• E) $3,000 unfavorablE.

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Definitions:

Group Members

Individuals who are part of a collective or organization, sharing common interests, goals, or characteristics.

Imposed Solution

A resolution to a disagreement or dispute that is dictated or enforced by an authority or external party, not by mutual agreement of the involved parties.

Mediation

A process where a neutral third party assists disputing parties in reaching a mutually acceptable agreement.

Surrender Control

The act of willingly giving up authority or power over a situation to another party.