Question
Fegox Firinghi (FF) produces flip flops. Each flip-flop requires 2 lbs of Flub and 1 lb of Fleeb, which are planned to cost $8 and
Fegox Firinghi (FF) produces flip flops. Each flip-flop requires 2 lbs of Flub and 1 lb of Fleeb, which are planned to cost $8 and $3 per lb. respectively. During the month of May, FF purchased 22,000 lbs of Flub for $194,000 and 13,000 lbs of Fleeb for $42,000. All materials were consumed in producing 10,500 good flip flops.
Which is true?
(a)The direct material quantity variances total $21,000 fav
(b)FF was very efficient in using raw materials to produce their output
(c)Direct material quantity variances total $15,500 fav
(d)Direct materials quantity variances total $15,500 unfav
(e)All of the above are false
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