A company producing a single product employs the following direct materials cost standard for each unit...
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A company producing a single product employs the following direct materials cost standard for each unit of output: 3 pounds of materials x $4 per pound = $12 per output unit Data regarding the operations for the current month are as follows: Planned production Actual production Actual purchases of direct materials (75,000 pounds) Direct materials used in production 26,000 units 23,000 units $297,000 70,000 pounds What would be the amount of the direct materials purchase price variance and direct materials quantity variance that the company would recognize for the month? Purchase Price Variance Quantity Variance $3,000 favorable O A. $24,000 unfavorable В. $3,000 favorable $4,000 unfavorable C. $2,800 favorable $4,000 unfavorable O D. $3,120 favorable $32,000 favorable A company producing a single product employs the following direct materials cost standard for each unit of output: 3 pounds of materials x $4 per pound = $12 per output unit Data regarding the operations for the current month are as follows: Planned production Actual production Actual purchases of direct materials (75,000 pounds) Direct materials used in production 26,000 units 23,000 units $297,000 70,000 pounds What would be the amount of the direct materials purchase price variance and direct materials quantity variance that the company would recognize for the month? Purchase Price Variance Quantity Variance $3,000 favorable O A. $24,000 unfavorable В. $3,000 favorable $4,000 unfavorable C. $2,800 favorable $4,000 unfavorable O D. $3,120 favorable $32,000 favorable
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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