Tower Company planned to produce 3,000 units of its single product,Titactium,during November.The standards for one unit of Titactium specify six grams of materials at $0.30 per gram.Actual production in November was 3,100 units of Titactium.There was a favourable materials price variance of $380 and an unfavourable materials quantity variance of $120.Based on these variances,one could conclude that:
A) more materials were purchased than were used.
B) more materials were used than were purchased.
C) the actual cost per gram for materials was less than the standard cost per gram.
D) the actual usage of materials was less than the standard allowed.
Correct Answer:
Verified
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