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Keegan Inc

Question 212

Multiple Choice

Keegan Inc. budgeted 10,800 pounds of direct materials costing $16.50 per pound to make 5100 units of product. The company actually purchased 10,900 pounds of direct materials costing $25.00 per pound to make the 5100 units. What is the direct materials quantity variance?


A) $2500 favorable
B) $1650 favorable
C) $1650 unfavorable
D) $2500 unfavorable

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