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During August, 40,000 Units Were Produced

Question 25

Multiple Choice

During August, 40,000 units were produced. The standard quantity of material allowed per unit was 5 kg at a standard cost of $2.50 per kilogram. Suppose the company had a favourable usage variance of $25,000. What would have been the actual quantity of materials used?


A) 95,000 kg
B) 105,000 kg
C) 190,000 kg
D) 210,000 kg

Correct Answer:

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