A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month, 1,500 pounds of direct materials were purchased for $5,700. The direct materials price variance for last month was:

Question

04-09-2019
Business

contestada

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month, 1,500 pounds of direct materials were purchased for $5,700. The direct materials price variance for last month was:

Respuesta :

Otras preguntas

Fraser Company will need a new warehouse in five years. The warehouse will cost $500,000 to build. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determ

According to the prompt, how will you support your analysis?

Pace Company has the following plan information available for 2019: Month Total Sales January $166,000 February $150,000 March $136,000 April $182,000 May $152,

In an effort to remember how to spell "rhinoceros", Sheryl writes the word 30 times. She is using a technique known as:

n colonial America, who were the Sons of Liberty? d group of workers and shopkeepers who organized to protest British taxes a group of politicians Vtmo drafted

In most unsaturated fatty acids found in animal fats, vegetable oils, and biological membranes, the cis isomer predominates. true false

2- A 0.60 sample an unknown organic acid found in muscle cells is burned in air and found to contain 0.24 grams of carbon, 0.040 grams of hydrogen, with the res

Assume that EEG Company wanted to reduce the cost of materials handling in each of its stores, and management set a target reduction of 2 percent per year. If a

A coin is tossed times and comes up heads times. Use the Empirical Method to approximate the probability that the coin comes up heads. Round your answer to four

Find the next number of the series 563, 647, 479, 812

stokholm stokholm · Answer 1 · 2019-09-09T12:02:46+02:00

Answer:

Direct Material Price Variance = $300 Favorable

Explanation:

Direct Material Price Variance = (Standard Price - Actual Price) [tex]\times[/tex] Actual Quantity

Standard Price = $4 per pound

Actual Price = [tex]\frac{Actual\ Cost}{Actual\ Units}[/tex] = [tex]\frac{5,700}{1,500} = 3.8[/tex]

Since the actual price is less than the standard price the variance will be favorable as the amount paid for actual use is less then the estimated standard cost.

Thus, direct material price variance = ($4 - $3.8) [tex]\times[/tex] 1,500

= $300 Favorable