Which of the following statements isare true 1 The material

Which of the following statements is(are) true? 1) The material quantity variance is based on actual output. 2) The material quantity variance is based on standard output 3) The material price variance is preferably based on the actual quantity us 4) The material price variance is prefefably based on the actual quantity purchased. O 2 and 4. O 1 and 3. O 2 and 3. O 1 and 4. O None of the statements is true. QUESTION7 Cost standards for one unit of product no. C77: Direct material . Direct labor 3 pounds at $2.50 per pound 5 hours at $7.50 per hour 7.50 37.50 Actual results: Units produced Direet material purchased Direct material used Direct labor 7.800 units 26,000 pounds al $2.70 23,100 pounds at $2.70 40,100 hours at $7.30 $ 70,200 62.370 292,730 ? e: The direct-material quantity variance is $750F $750U $6,500U Click Save and Submit to save and submit. Click Save All An to Save All

Solution

1. The answer is \"2 and 4\"

The material quantity variance is based on standard output.

The material price variance is preferably based on the actual quantity purchased.

2. The answer is \"$750F\"

Material quantity variance = {(7,800 x 3) - 23,100)} x 2.50 = $750F