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The Following Information Is for Pepper Pike Corporation * Direct Material Is Measured in Pounds _____ Is the Direct

Question 109

Multiple Choice

The following information is for Pepper Pike Corporation:  Direct  Material  Standard price per unit of input $20 Actual price per unit of input $18 Standard inputs allowed per unit of output 3 pounds  Actual units of input 8,300 pounds  Actual units of output 2,770 units \begin{array}{lrl}&\text { Direct }\\&\text { Material }\\\text { Standard price per unit of input } & \$ 20 & \\\text { Actual price per unit of input } & \$ 18 & \\\text { Standard inputs allowed per unit of output } & 3 & \text { pounds } \\\text { Actual units of input } & 8,300 & \text { pounds } \\\text { Actual units of output } & 2,770 \text { units }\end{array} * Direct material is measured in pounds _____ is the total direct-material flexible-budget variance.


A) $16,400 unfavorable
B) $16,400 favorable
C) $16,800 favorable
D) $16,800 unfavorable

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