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A company developed the following per unit materials standards for its product: 3 gallons of direct materials at $4 per gallon. If 4,000 units of
A company developed the following per unit materials standards for its product: 3 gallons of direct materials at $4 per gallon. If 4,000 units of product were produced last month and 12,500 gallons of direct materials were used, the direct materials quantity variance was
a. $1,200 favorable.
b. $2,000 unfavorable.
c. $1,200 unfavorable.
d. $2,000 favorable.
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