The Steinberg Company had the following direct material costs for the manufacture of product T in March:
Question:
The Steinberg Company had the following direct material costs for the manufacture of product T in March:
Actual purchase price per pound of direct materials $8.90
Standard Direct Materials Allowed for Units of Product T Produced 3500 lbs.
Decrease in inventory of direct materials 240 pounds
Direct materials used in production . 3700 lbs
Standard price per pound of material $8.65
1. What was Steinberg's direct materials purchase price variance and its direct materials use variance in March? Indicate whether each variation was F (favorable) or U (unfavorable).
2. Prepare the appropriate journal entries for March.
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins