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The Following Information Is for Parma Corporation * Direct Material Is Measured in Pounds Is the Direct-

Question 94

Multiple Choice

The following information is for Parma Corporation:  Direct Material  Standard price p er unit of input $29 Actual price per unit of input $27 Stand ard inputs allowed per unit of output 3 pounds  Actual units of input 9,300 pounds  Actual units of output 2,770 units \begin{array}{ll}&\text { Direct Material }\\\text { Standard price } p \text { er unit of input } & \$ 29 \\\text { Actual price per unit of input } & \$ 27 \\\text { Stand ard inputs allowed per unit of output } & 3 \text { pounds } \\\text { Actual units of input } & 9,300 \text { pounds } \\\text { Actual units of output } & 2,770 \text { units }\end{array} * Direct material is measured in pounds is the direct- material price variance.


A) $18,600 favorable
B) $5,540 favorable
C) $18,600 unfavorable
D) $5,540 unfavorable

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