makes a product with the following standard costs Hours 2.0 pounds 0.4 hours 0,4

Question

makes a product with the following standard costs Hours 2.0 pounds 0.4 hours 0,4 hours 7.00 per pound $12.00 per hour $ 2.00 per hour Direct labor Variable overhead hours During the month, the company purchased 10670 In January the company produced 4,600 units using 10.100 pounds of the direct material and 2.080 direct labor-hours. During the month, the company purchased pounds of the direct material at a cost of $76,550 The actual direct labor cost was $38.258 and the actual variable overhead cost was $11,959 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased January is

Explanation / Answer

Material Price Variance Actual cost of purchases-(Qty purchased*std rate) $76550-(10670*7) 1860 U Option B $1860 U (as actual cost is more than the standard cost of actual poundes purchased) I think this should be the answer. If ny doubt please comment. If satisfied you can rate

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.