Cultco Company Ltd Has Set the Following Direct Material Standards

question 30

Multiple Choice

Cultco Company Ltd has set the following direct material standards per unit of product: 2.5 kg @ $3.00 per kg; $7.50 per unit. During April, actual direct material purchased and used amounted to 8000 kg at a cost of $3.10 per kg. Actual production amounted to 3000 units. Determine Cultco's direct material quantity variance.

• A) $2300 (U)
• B) $1500 (U)
• C) $800 (U)
• D) $500 (U)

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