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A company developed the following per unit materials standards for its product: 3 gallons of...

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Question

Accounting

A company developed the following per unit materials standards for its product: 3 gallons of direct materials at $5 per gallon. If 2,000 units of product were produced last month and 5,750 gallons of direct materials were used, the direct materials quantity variance was:

a.

$750 favorable
b.

$1,250 favorable
c.

$7,500 favorable
d.

$11,250 favorable.

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