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A Company Has Established 5 Pounds of Material J at $2

Question 146

Multiple Choice

A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880. The direct materials quantity variance is:


A) $120 favorable.
B) $400 unfavorable.
C) $520 unfavorable.
D) $520 favorable.
E) $400 favorable.

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