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A Company Developed the Following Per-Unit Standards for Its Product

Question 201

Multiple Choice

A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon. Last month 3000 gallons of direct materials were purchased for $22800. The direct materials price variance for last month was


A) $22800 favorable.
B) $600 favorable.
C) $1200 favorable.
D) $1200 unfavorable.

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