1. The direct materials quantity standard should 

A) exclude unavoidable waste. 

B) exclude quality considerations. 

C) allow for normal spoilage. 

D) always be expressed as an ideal standard. 

 

Use the following to answer questions 2-4: 

Stiner Company has a materials price standard of $2.00 per pound. Five thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 5,000 pounds, although the standard quantity allowed for the output was 4,500 pounds. 

 

2. Stiner Company’s materials price variance is 

A) $100 U. 

B) $1,000 U. 

C) $900 U. 

D) $1,000 F. 

 

3. Stiner Company’s materials quantity variance is 

A) $1,000 U. 

B) $1,000 F. 

C) $1,100 F. 

D) $1,100 U. 

 

4. Stiner Company’s total materials variance is 

A) $2,000 U. 

B) $2,000 F. 

C) $2,100 U. 

D) $2,100 F. 

 

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