Based upon the table, the price for the year was: Based upon the table, the tota

Question

Based upon the table, the price for the year was: Based upon the table, the total cost for materials was: $45.000 favorable $45.000 unfavorable $25.003 unfavorable $15.000 unflavored Peyton is responsible for controlling expenses. but is not for generating He a manager of a(n) Liabttty center B Revenue center. Investment center Cost center Which of the following items would be classified as a decision? Cost of a new machine The quality of the products proceed by the machine Depreciation of ousting machine Book value of the existing machine

Explanation / Answer

Answer

24

Material price variance = (actual quantity*standard price) – (Actual quantity*Actual price)

                                           = (5000*5*10) – (5000*5*5)

                                          =250000 – 125000

                                          = $ 125000 favourable

Answer : A. $ 125000 favourable

25

Material Usage variance = (standard quantity * Standard price) – (Actual quantity*standard price)

                                              = (5000*2*10) – (5000*5*10)

                                              =100000 – 250000

                                              = 150000 unfavourable

Answer : B. $ 150000 unfavourable

26

Total material cost variance = Material price variance + Material Usage variance

                                                    = $ 125000 (favourable) + $ 150000 (unfavourable)

                                                   = $ 25000 (unfavourable)

Answer : C. $ 25000 unfavourable

27

Answer : D. Cost Center

28

Answer : B. The Quality of the products produced by the machine

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