In July, a company expected that the cost of direct materials would amount to $24 for each unit of its product. Although the company had expected to produce 10,000 units during July, the company actually produced 11,500 units. The actual cost of direct materials per unit amounted to $19. What is the master (static) budget variance for direct materials? Indicate whether the variance is favorable or unfavorable. O $21.500 Favorable O $21,500 Unfavorable O $36,000 Favorable O $36,000 Unfavorable O None of the above

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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In July, a company expected that the cost of direct materials would amount to $24 for each unit of
its product. Although the company had expected to produce 10,000 units during July, the company
actually produced 11,500 units. The actual cost of direct materials per unit amounted to $19.
What is the master (static) budget variance for direct materials? Indicate whether the variance is
favorable or unfavorable.
O $21,500 Favorable
O $21,500 Unfavorable
O $36,000 Favorable
O $36,000 Unfavorable
O None of the above
Transcribed Image Text:In July, a company expected that the cost of direct materials would amount to $24 for each unit of its product. Although the company had expected to produce 10,000 units during July, the company actually produced 11,500 units. The actual cost of direct materials per unit amounted to $19. What is the master (static) budget variance for direct materials? Indicate whether the variance is favorable or unfavorable. O $21,500 Favorable O $21,500 Unfavorable O $36,000 Favorable O $36,000 Unfavorable O None of the above
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