A firm produces a product that requires seven standard pounds per unit. The standard price is $5 per pound. If 6,300 units used 42,300 pounds, which were purchased at $5.2 per pound. Find direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
A firm produces a product that requires seven standard pounds per unit. The standard price is $5 per pound. If 6,300 units used 42,300 pounds, which were purchased at $5.2 per pound. Find direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 20MCQ: A firm comparing the actual variable costs of producing 10,000 units with the total variable costs...
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A firm produces a product that requires seven standard pounds per unit. The standard price is $5 per pound. If 6,300 units used 42,300 pounds, which were purchased at $5.2 per pound.
Find direct materials (a) price variance, (b) quantity variance, and (c) cost variance?
Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
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