Question

4 of 10 (0 complete) This Quiz: 10 pts possible This Question: 1 pt Amber Manipulation Manufacturing's (AMM) standards anticipate that there will be 7 pounds of raw material used for every unit of finished goods produced. AMM began the month of May with 6,000 pounds of raw material, purchased 33,100 pounds for $19,860 and ended the month with 4,800 pounds on hand. The company produced 4,700 units of fr shed goods. The company estimates standard costs at $1.10 per pound. The materials price and efficiency variances for the month of May were: Efficiency Variance Price Van ce O 1. $16.550 U $1,540 F O2 $16,550 F $1,540 U O3 $16.550 F S0 Se O4 $17,150 F $1,540 U see see s see sce Cick to select your anwer This course al2 Mange gSeion 0bed on omgen Cot Accounting 16e

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 3 The correct answer is Material Price Variance 2 16550F Material Quantity Variance 15400 8 Calculation and explanation 10 Material Price Variance = Actual Cost - (standard price* purchase qty) 11 = 19860-(33100*1.1) 12 = $ 16550 Favourable 14 Material quantity Variance 15 = (actual qty Used - standard qty)* standard Price 16 = (6000+33100-4800) -(7*4700)) *1.1 17 = 1540 Unfavourable 18 19 For any help please comment in the comment box