The Southside Corporation Budgeted 4600 Pounds of Direct Materials to Make

Multiple Choice

The Southside Corporation budgeted 4600 pounds of direct materials to make 2700 units of product. The company actually used 5700 pounds of direct materials to make the 2700 units. The direct materials quantity variance is $1200 unfavorable. What is the Standard Price (SP) per pound of direct materials?

A) $0.44
B) $2.25
C) $4.75
D) $1.09