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Problem 1: Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is:
Direct materials standard (5 lbs @ $1/lb) $5per finished unit
Total direct materials cost variance-unfavorable $15,750
Actual direct materials used 150,000lbs.
Actual finished units produced 25,000units
Multiple Choice Option 1: $9,250 favorable. Option 2: $25,000 unfavorable. Option 3: $25,000 favorable. Option 4: $15,750 favorable. Option 5: $15,750 unfavorable.
What the cash payback period on the equipment is? If the equipment is purchased, annual revenues are expected to be $135000
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