Question

Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is:
Direct materials standard (7 kg. @ $2/kg) $14 per finished unit
Actual cost of materials purchased $322,500
Actual direct materials purchased and used 150,000 kg

A.$27,500 unfavorable.
B.$50,000 unfavorable.
C.$50,000 favorable.
D.$22,500 unfavorable.
E.$22,500 favorable.

Answer

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