The Koski Company has established standards as follows: Direct material: 3 lbs. @ $4/lb. = $12

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The Koski Company has established standards as follows:

Direct material: ………… 3 lbs. @ $4/lb. = $12 per unit

Direct labor: ……………. 2 hrs. @ $8/hr. = $16 per unit

Actual production figures for the past year were as follows:

Units produced: 500

Direct material used: 1,600 lbs.

Direct material purchased (3,000 lbs.): $12,300

Direct labor cost (950 hrs.): $7,790

The materials quantity variance is:

1. $410 favorable

2. $410 unfavorable

3. $400 favorable

4. $400 unfavorable

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Cornerstones of Managerial Accounting

ISBN: 978-0324660135

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Authors: Mowen, Hansen, Heitger

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Question Posted: Jan 10, 2013 05:14 AM

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The Koski Company has established standards as follows: Direct material: 3 lbs. @ $4/lb. = $12

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4 400 unfavorable Computation of the Material Quantity Variance Mater...View the full answer

Cornerstones of Managerial Accounting

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