The standard costs and actual costs for direct materials,direct labor,and factory overhead for the manufacture of 2,500 units of product are as follows:
Variable cost @ $2 per hour
Total variable cost,$18,000
Fixed cost @ $0.80 per hour
Total fixed cost,$8,000
-The amount of the direct materials quantity variance is
A)$875 favorable.
B)$875 unfavorable.
C)$800 favorable.
D)$800 unfavorable.

Question

The standard costs and actual costs for direct materials,direct labor,and factory overhead for the manufacture of 2,500 units of product are as follows:
  Variable cost @ $2 per hour
Total variable cost,$18,000
Fixed cost @ $0.80 per hour
Total fixed cost,$8,000
-The amount of the direct materials quantity variance is
A)$875 favorable. 
B)$875 unfavorable. 
C)$800 favorable. 
D)$800 unfavorable.

Quizplus · Accepted Answer

The Answer of The standard costs and actual costs for direct materials,direct labor,and factory overhead for the manufacture of 2,500 units of product are as follows:
  Variable cost @ $2 per hour
Total variable cost,$18,000
Fixed cost @ $0.80 per hour
Total fixed cost,$8,000
-The amount of the direct materials quantity variance is
A)$875 favorable. 
B)$875 unfavorable. 
C)$800 favorable. 
D)$800 unfavorable.

The Standard Costs and Actual Costs for Direct Materials,direct Labor,and