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Scarlett Company Has a Direct Materials Standard of 3 Gallons

Question 40

Multiple Choice

Scarlett Company has a direct materials standard of 3 gallons of input at a cost of $5 per gallon.During July,Scarlett Company purchased and used 7,500 gallons.The direct materials quantity variance was $750 unfavorable and the direct materials price variance was $3,000 favorable.How many units were produced?


A) 2,450 units
B) 2,500 units
C) 7,350 units
D) 7,500 units

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