Lucky Number 13, Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government.As a result of the hack, valuable information regarding direct material purchases and usage were stolen. A managerwas able to pull previous records and determined that 3,000 fewer pounds were used in the production of 50,000pairs of sweatpants last period than were purchased. Data also shows that the total direct material variance was$10,000 unfavorable. The direct material price variance was documented to be $150,000 favorable, which resultedfrom the actual cost per pound of direct material being $4.00 lower than the expected cost of $10.00 per pound.Additional documentation regarding the direct materials quantity variance could not be found. The number of poundsneeded to produce each pair of sweatpants isOA. 0.986000 PoundsOB. 0.946000 PoundsOC. 0.974000 PoundsOD. 0.394000 Pounds

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Description: Lucky Number 13, Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government.As a result of the hack, valuable information regarding direct material purchases and usage were stolen. A managerwas able to pull previ

The correct answer is C. 0.974000 POUNDS

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Lucky Number 13, Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government. As a result of the hack, valuable information regarding direct material purchases and usage were stolen. A manager was able to pull previous records and determined that 3,000 fewer pounds were used in the production of 50,000 pairs of sweatpants last period than were purchased. Data also shows that the total direct material variance was 510,000 unfavorable. The direct material price variance was documented to be $150,000 favorable, which resulted from the actual cost per pound of direct material being $4.00 lower than the expected cost of $10.00 per pound. Additional documentation regarding the direct materials quantity variance could not be found. The number of pounds needed to produce each pair of sweatpants is OA. 0.986000 Pounds OB. 0.946000 Pounds OC. 0.974000 Pounds OD. 0.394000 Pounds

Lucky Number 13, Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government. As a result of the hack, valuable information regarding direct material purchases and usage were stolen. A manager was able to pull previous records and determined that 3,000 fewer pounds were used in the production of 50,000 pairs of sweatpants last period than were purchased. Data also shows that the total direct material variance was 510,000 unfavorable. The direct material price variance was documented to be $150,000 favorable, which resulted from the actual cost per pound of direct material being $4.00 lower than the expected cost of $10.00 per pound. Additional documentation regarding the direct materials quantity variance could not be found. The number of pounds needed to produce each pair of sweatpants is OA. 0.986000 Pounds OB. 0.946000 Pounds OC. 0.974000 Pounds OD. 0.394000 Pounds

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Lucky Number 13, Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government.
As a result of the hack, valuable information regarding direct material purchases and usage were stolen. A manager
was able to pull previous records and determined that 3,000 fewer pounds were used in the production of 50,000
pairs of sweatpants last period than were purchased. Data also shows that the total direct material variance was
$10,000 unfavorable. The direct material price variance was documented to be $150,000 favorable, which resulted
from the actual cost per pound of direct material being $4.00 lower than the expected cost of $10.00 per pound.
Additional documentation regarding the direct materials quantity variance could not be found. The number of pounds
needed to produce each pair of sweatpants is
OA. 0.986000 Pounds
OB. 0.946000 Pounds
OC. 0.974000 Pounds
OD. 0.394000 Pounds

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