Solved

The Savage Company Makes Mugs for Which the Following Standards

Question 103

Multiple Choice

The Savage Company makes mugs for which the following standards have been developed:
 Standard Inputs Expected  Standard Price  Expected  For Each Unit of Output  Per Unit of Input  Direct Materials 5 ounces $2 per ounce  Direct Labor 1.5 hours $8 per hour \begin{array}{lll}&\text { Standard Inputs Expected }&\text { Standard Price }\\\text { Expected }&\text { For Each Unit of Output }&\text { Per Unit of Input }\\\hline\text { Direct Materials } & 5 \text { ounces } & \$2 \text { per ounce } \\\text { Direct Labor } & 1.5 \text { hours } & \$ 8 \text { per hour }\end{array}
Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct material quantity variance for July?


A) $200 Favorable
B) $200 Unfavorable
C) $220 Favorable
D) $220 Unfavorable

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents