Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct materials usage variance for July, to the nearest dollar, was:
A) $3,000 favorable.
B) $43,000 favorable.
C) $12,000 unfavorable.
D) $15,000 unfavorable.

Question

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct materials usage variance for July, to the nearest dollar, was:
A) $3,000 favorable. 
B) $43,000 favorable. 
C) $12,000 unfavorable. 
D) $15,000 unfavorable.

Quizplus · Accepted Answer

The Answer of Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct materials usage variance for July, to the nearest dollar, was:
A) $3,000 favorable. 
B) $43,000 favorable. 
C) $12,000 unfavorable. 
D) $15,000 unfavorable.