Solution-What the mostly likely explanation for the

What the mostly likely explanation for the variance is

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Reference no: EM132529353

Question 1: Assume the direct material standards are 1.5 board feet per unit at $4.00 per board foot; the direct labor standards are 2.0 hours per unit at $18.00 per hour; and 5,000 units were produced. If 7,000 board feet of material was actually used and the direct materials price variance was $1,750 U, the mostly likely explanation for this variance is:

Option 1: The company paid a higher price for the materials than allowed by the standards.

Option 2: The company used greater quantity of materials than allowed by the standards.

Option 3: The company paid a higher rate for labor than allowed by the standards.

Option 4: The company used more labor hours than allowed by the standards.

Option 5: None of the answers is correct.

Reference no: EM132529353

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What the mostly likely explanation for the variance is

Reference no: EM132529353

Reference no: EM132529353

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