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The Per-Unit Standards for Direct Materials Are 2 Gallons at $4

Question 163

Multiple Choice

The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 2,800 gallons of direct materials that actually cost $10,600 were used to produce 1,500 units of product. The direct materials quantity variance for last month was


A) $800 favorable.
B) $600 favorable.
C) $800 unfavorable.
D) $1,400 unfavorable.

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