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:

Noncash Assets

Assets that cannot be easily converted into cash, such as property, plant, and equipment.

Capital Balance

The amount of money that stakeholders have invested in a company minus any distributions to those stakeholders.

Capital Account

An account showing the net changes in a nation's financial assets and liabilities as part of its balance of payments.

Statement Of Partners' Equity

A financial document that outlines the changes in the equity accounts of partners throughout the accounting period, including additions due to investments and profits, and deductions due to withdrawals and losses.