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Question 1 - Happy, Inc. produces a product requiring 8 pounds of material at P1.50 per pound. Happy, Inc. produced 10,000 units of this product during 2021 resulting in a P30,000 unfavorable materials quantity variance. How many pounds of direct material did Happy, Inc use during 2021?
a. 100,000 pounds
b. 160,000 pounds
c. 80,000 pounds
d. 125,000 pounds
Question 2 - The standard quantity allowed for the units produced was 4,500 pounds, the standard price was P2.50 per pound, and the materials quantity variance was P375 favorable. Each unit uses 1 pound of materials. How many units were actually produced?
a. 4,350
b. 4,500
c. 11,625
d. 4,650
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