Multiple Choice
In June,Indigo Manufacturing purchased 6,000 gallons of blue dye used to produce stone-washed denim clothing.The price per gallon was $1.24 and the company used 5,400 gallons of the dye during the month to produce 42,660 yards of denim fabric.The standard allows for 8 yards of fabric per gallon of dye.The standard price for the dye is $1.26.What is the materials quantity variance for Indigo for June?
A) $85.05 favorable
B) $85.05 unfavorable
C) $108 favorable
D) $108 unfavorable
Correct Answer:
Verified
Correct Answer:
Verified
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