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Hershey Inc. uses the standard costing system for baking Chips Ahoy. For baking the cookies, it...

Hershey Inc. uses the standard costing system for baking Chips Ahoy. For baking the cookies, it has set some standards for direct materials. This is a standard of 2 gallons of input at a cost of $8.00 per gallon. During July, Hershey Inc. purchased and used 6,800 gallons, paying $47,300. The direct materials quantity variance for Hershey Company's Chips Ahoy was $1,920 unfavorable. How many units were produced?

Multiple Choice

  • 3,280 units

  • 3,380 units

  • 3,187 units

  • 6,800 units

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The correct answer is (a) i.e, 3280 units

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