Question

Janitor Supply produces an industrial cleaning powder that requires 40 grams of material at $010 per gram and 0.25 direct lab
Multiple Choice $700 $8.50 $11.50. $7.50 $25.00
Claremont Company sells refurbished copiers. During the month, the company sold 180 copiers for total sales of $540,000. The
Saved $20,000 unfavorable $20,000 favorable $36,000 unfavorable $32,000 unfavorable $36,000 favorable Drou
Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price
$2.430 unfavorable. $3,570 unfavorable $2,430 favorable $6,000 unfavorable $3,570 favorable.
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Answer #1

1. Standard cost per unit = 40*0.10 + 12*0.25 + 18*0.25 = $11.50 per unit

2. Sale price variance = (540000/180 - 3200)*180 = $36000 Unfavorable

3. Materials price variance = (Standard price - actual price) x Material purchased
= (2 - 483570/243000)*243000

= $2430 Favorable

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