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Assume the Jones Company uses a standard costing system. They estimate each unit cost contains the following;
Direct materials of 5 lbs of material at $3.00 per lb.
Direct labor of 2 hours at $30 per hour
During the month they purchased 30,000 lbs of material at a cost of $92,000 and used 27,000 of those lbs producing 5,300 units. Also, during the same month they used 11,000 hours and paid workers a total of $340,000.
Question 1: what is the material quantity variance for the month?
A. $1,500 favorable
B. $1,500 unfavorable
C. $2,000 unfaavorable
D. None of the answers are correct
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