Precilla Company uses a standard costing system that allows 2 pounds of direct materials for one finished unit.During July,the company purchased 40,000 pounds of direct materials for $210,000 and manufactured 12,000 finished units.The standard direct materials cost allowed for the units manufactured is $120,000.The performance report shows that Pricilla has an unfavorable direct materials usage variance of $5,000.Also,the company records any price variance for materials at time of purchase.
The number of pounds of direct materials used to produce July's output was:
A)12,000 pounds.
B)20,000 pounds.
C)24,000 pounds.
D)25,000 pounds.
E)40,000 pounds.

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The Answer of Precilla Company uses a standard costing system that allows 2 pounds of direct materials for one finished unit.During July,the company purchased 40,000 pounds of direct materials for $210,000 and manufactured 12,000 finished units.The standard direct materials cost allowed for the units manufactured is $120,000.The performance report shows that Pricilla has an unfavorable direct materials usage variance of $5,000.Also,the company records any price variance for materials at time of purchase.
The number of pounds of direct materials used to produce July's output was:
A)12,000 pounds.
B)20,000 pounds.
C)24,000 pounds.
D)25,000 pounds.
E)40,000 pounds.

Precilla Company Uses a Standard Costing System That Allows 2