Mr. Rogers, the production manager, has received a report showing a $10,800 unfavorable total materials variance (materials

Question:

Mr. Rogers, the production manager, has received a report showing a $10,800 unfavorable total materials variance (materials price variance plus materials quantity variance). He knows that production used 20,000 pounds less than the budgeted amount of direct materials allowed for actual output. Mr. Rogers also knows that the standard price for direct materials was determined to be 90 cents per pound.

What was the actual cost of direct materials used during the period if the standard amount allowed was estimated to be 500,000 pounds?


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

Question Posted: