Question
Use the following information to answer Questions 16-18: Sheen, Inc. has collected the following data on one of its products: Direct Materials Standard per Finished
Use the following information to answer Questions 16-18: Sheen, Inc. has collected the following data on one of its products:
Direct Materials Standard per Finished Unit (8 Lbs. @ $0.50 per Lb.) $4.00 per Unit
Actual Finished Units Produced 12,500 Units
Actual Direct Materials Used 125,000 Lbs.
Actual Direct Materials Cost $57,500
16 . The direct materials PRICE variance is:
A. $5,000 Favorable
B. $5,000 Unfavorable
C. $7,500 Unfavorable
D. $12,500 Favorable
E. $12,500 Unfavorable
17 . The direct materials QUANTITY variance is:
A. $5,000 Favorable
B. $5,000 Unfavorable
C. $7,500 Unfavorable
D. $12,500 Favorable
E. $12,500 Unfavorable
18 . The total direct materials cost variance is:
A. $5,000 Favorable
B. $5,000 Unfavorable
C. $7,500 Unfavorable
D. $12,500 Favorable
E. $12,500 Unfavorable
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