ACME Inc. has the following standard unit cost for a single product: 2 kg of materials...

 

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ACME Inc. has the following standard unit cost for a single product: 2 kg of materials @ $22.00 per hour = $44.00 Actual material data for the month is as follows: 550 kg of material purchased for $11,250 525 kg of material used in production Actual production was 255 units Required: 1. Calculate all the direct materials variances for the month. 2. Prepare the journal entries to record all the variances. ACME Inc. has the following standard unit cost for a single product: 2 kg of materials @ $22.00 per hour = $44.00 Actual material data for the month is as follows: 550 kg of material purchased for $11,250 525 kg of material used in production Actual production was 255 units Required: 1. Calculate all the direct materials variances for the month. 2. Prepare the journal entries to record all the variances.

Answer rating: 100% (QA)

Solution 1 We need to calculate the direct materials variances for the month Given Standard cost2 kg ... View the full answer