Steinberg Company had the following direct materials costs for the manufacturing of product T in March: Actual
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Question:
Steinberg Company had the following direct materials costs for the manufacturing of product T in March:
Actual purchase price per pound of direct materials $ 9.00
Standard direct materials allowed for units of product T produced 3,900 pounds
Decrease in direct materials inventory 280 pounds
Direct materials used in production 4,100 pounds
Standard price per pound of material $ 8.45
Required:
1. What was Steinberg's direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each variance was favorable (F) or unfavorable (U).
2. Prepare the appropriate journal entries for March.
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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