Georgia, Inc

question 6

Multiple Choice

Georgia, Inc. has collected the following data on one of its products. 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.

---

Definitions:

Direct Labor Workers

Employees who are directly involved in the production process of goods or services, whose labor costs are easily attributable to specific products.

Fixed Overhead

Costs that remain constant for a specific period regardless of the level of production or business activity.

Work in Process

Inventory that includes all materials, labor, and overhead costs for products that are in the production process but not yet completed.

Direct Labor

The wages and related expenses for workers who are directly involved in the production of goods or services.