Parallel Enterprises Has Collected the Following Data on One of Its

Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is: $$\begin{array} { l l } \text { Direct materials standard ( } 7 \mathrm {~kg} @ \$ 2 / \mathrm { kg } ) & \$ 14 \text { per finished unit } \\\text { Actual cost of materials purchased } & \$ 322,500 \\\text { Actual direct materials purchared and used } & 150,000 \mathrm {~kg}\end{array}$$

A) $27,500 unfavorable.
B) $50,000 unfavorable.
C) $50,000 favorable.
D) $22,500 unfavorable.
E) $22,500 favorable.

Correct Answer:

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