Question: hello, please help with homework problem. Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established

hello, please help with homework problem. hello, please help with homework problem. Smith Industries uses a cost system

Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units; they paid $39,370 for the 15,500 pounds of material. 1. Calculate the direct materials price variance for July, and indicate if the variance is favorable or unfavorable. 2. Calculate the direct materials quantity variance for July, and indicate if the variance is favorable or unfavorable. 3. Calculate the total spending variance for July, and indicate if the variance is favorable or unfavorable. (Round all solutions to the nearest whole dollar)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!