A corporation produces a product that has a standard materials cost of three pounds of raw materials
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Question:
A corporation produces a product that has a standard materials cost of three pounds of raw materials at $5.00 per pound. During April, 7,500 pounds of raw materials costing $5.40 per pound were used in making 2,900 units.
Calculate the direct materials quantity variance.
Calculate the direct materials price variance.
Note: If the variance is Unfavorable, type a minus sign “-” in front of your answer. For example: if variance is $1,000 Unfavorable, type
“-1,000” (no spaces). Do not include any decimal places; do not include the $ sign.
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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