Question
Moss company prepared a budget based on producing 10,000 units of its product Vivisud during March. The standard cost card for Vivisud specifies 4 pounds
Moss company prepared a budget based on producing 10,000 units of its product Vivisud during March. The standard cost card for Vivisud specifies 4 pounds of materials at $1.50 per pound. Actual production of Vivisud in March was 9,800 units. The months performance report showed an unfavorable materials price variance of $1,150 and a favorable variance of $535. Based on these variances, one could conclude that:
A) The actual usage of materials was less than the standard allowed.
B) More materials were used than purchased.
C) More materials were purchased than were used.
D) The actual cost per pound for materials was less than the standard cost per pound.
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