A company provided the following direct materials cost information. Compute the direct materials quantity variance. standard costs assigned: Direct materials standard cost (455,000 units @ $3.00/unit) Actual costs: $ 1,365,000 Direct materials costs incurred (453,680 units @ $3.10/unit) $ 1,406,408 Multiple Choice $41,408 Favorable. $4,092 Unfavorable $4,092 Favorable. $3,960 Favorable. $3,960 Unfavorable.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 7E: H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup...
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A company provided the following direct materials cost information. Compute the direct materials quantity variance.
standard costs assigned:
Direct materials standard cost (455,000 units @ $3.00/unit)
Actual costs:
$ 1,365,000
Direct materials costs incurred (453,680 units @ $3.10/unit)
$ 1,406,408
Multiple Choice
$41,408 Favorable.
$4,092 Unfavorable
$4,092 Favorable.
$3,960 Favorable.
$3,960 Unfavorable.
Transcribed Image Text:A company provided the following direct materials cost information. Compute the direct materials quantity variance. standard costs assigned: Direct materials standard cost (455,000 units @ $3.00/unit) Actual costs: $ 1,365,000 Direct materials costs incurred (453,680 units @ $3.10/unit) $ 1,406,408 Multiple Choice $41,408 Favorable. $4,092 Unfavorable $4,092 Favorable. $3,960 Favorable. $3,960 Unfavorable.
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