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The Cheers Company Makes Mugs for Which the Following Standards

Question 10

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The Cheers Company makes mugs for which the following standards have been developed: The Cheers Company makes mugs for which the following standards have been developed: Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct material quantity variance for July? A) $200 Favorable B) $200 Unfavorable C) $220 Favorable D) $220 Unfavorable Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct material quantity variance for July?


A) $200 Favorable
B) $200 Unfavorable
C) $220 Favorable
D) $220 Unfavorable

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