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Lucky Number 1 3 , Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government. As a result of the

Lucky Number13, Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government. As a result of the hack, valuable information regarding direct material purchases and usage were stolen. A manager was able to pull previous records and determined that3,000 fewer pounds were used in the production of50,000 pairs of sweatpants last period than were purchased. Data also shows that the total direct material variance was $10,000 unfavorable. The direct material price variance was documented to be $150,000 favorable, which resulted from the actual cost per pound of direct material being $4.00 lower than the expected cost of $10.00 per pound. Additional documentation regarding the direct materials quantity variance could not be found. The number of pounds needed to produce each pair of sweatpants is:
Question 1 options:
0.974000 Pounds
0.946000 Pounds
0.986000 Pounds
0.394000 Pounds

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