Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company reports the following for one of its products. Direct materials standard ( 3 pounds & $ 2 per pound ) Actual direct materials

A company reports the following for one of its products.
Direct materials standard (3 pounds & $2 per pound)
Actual direct materials used (AQ)
Actual units produced
Actual cost of direct materials used
$6 per unit
280,000 pounds
72,000 units
$476,000
AQ=Actual Quantity
SQ= Standard Quantity
AP= Actual Price
SP= Standard Price
Compute the direct materials price and quantity variances and identify each as favorable or unfavorable.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Company Accounting

Authors: Ken Leo, John Hoggett, John Sweeting, Jennie Radford

8th Edition

0470819731, 978-0470819739

Students also viewed these Accounting questions

Question

A price reduction, or no charge at all, if this is appropriate?

Answered: 1 week ago