Perez, Inc. recently completed 46,000 units of a product that was expected to consume 5 pounds of direct material per finished unit. The standard price of the direct material was $6.50 per pound. If the firm purchased and consumed 234,000 pounds in manufacturing (cost = $1,448,900), the direct-material quantity variance would be:
$26,000U.
$26,000F.
$72,100U.
$72,100F.
None of these.
Answers: 2
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