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Cox Company's Direct Material Costs for the Month of January

Question 6

Multiple Choice

Cox Company's direct material costs for the month of January were as follows;
 Actual quantity purchased $18,000 kilograms  Actual unit purchase price $3.60 per kilogram  Materials price variance-  Unfavourable (based on purchases)  $3,600 Standard quantity allowed  For actual production 16,000 kilograms  Actual quantity used 15,000 kilograms \begin{array}{|l|r|}\hline \text { Actual quantity purchased } & \$ 18,000 \text { kilograms } \\\hline \text { Actual unit purchase price } & \$ 3.60 \text { per kilogram } \\\hline \text { Materials price variance- } & \\\hline \text { Unfavourable (based on purchases) } & \$ 3,600 \\\hline \text { Standard quantity allowed } & \\\hline \text { For actual production } &16,000 \text { kilograms } \\\hline \text { Actual quantity used } & 15,000 \text { kilograms } \\\hline\end{array}
What was the favourable direct materials quantity variance for January?


A) $3,360.
B) $3,375.
C) $3,400.
D) $3,800.

Correct Answer:

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