Question

The following company information is available:


Direct materials used for production 712 pounds
Standard quantity for units produced 750 pounds
Standard cost per pound of direct material $48
Actual cost per pound of direct material $50

The direct materials quantity variance is:
A. $1,824 favorable
B. $1,424 favorable
C. $400 favorable
D. $1,824 unfavorable
E. $1,424 unfavorable

Answer

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