COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11, 200 gallons of direct materials that actually cost $42, 400 were used to produce 6, 000 units of product. The direct materials quantity variance for last month was
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$3, 200 favorable.
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$2, 400 favorable.
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$3, 200 unfavorable.
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$5, 600 unfavorable.
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Explanation:
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