The standard and actual prices per pound of raw material are $4.00 and $4.50,respectively. A total of 10,500 pounds of raw material was purchased and then usedto produce 5,000 units. The quantity standard allows two pounds of the raw materialper unit produced. What is the materials quantity variance?a. $5,000 unfavorableb. $5,000 favorablec. $2,000 favorabled. $2,000 unfavorable
The standard and actual prices per pound of raw material are $4.00 and $4.50,respectively. A total of 10,500 pounds of raw material was purchased and then usedto produce 5,000 units. The quantity standard allows two pounds of the raw materialper unit produced. What is the materials quantity variance?a. $5,000 unfavorableb. $5,000 favorablec. $2,000 favorabled. $2,000 unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The standard and actual prices per pound of raw material are $4.00 and $4.50,
respectively. A total of 10,500 pounds of raw material was purchased and then used
to produce 5,000 units. The quantity standard allows two pounds of the raw material
per unit produced. What is the materials quantity variance?
a. $5,000 unfavorable
b. $5,000 favorable
c. $2,000 favorable
d. $2,000 unfavorable
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