Oddo Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |
Direct materials | 2.0 ounces | $6.00 per ounce | $12.00 |
Direct labor | 0.6 hours | $12.00 per hour | $7.20 |
Variable overhead | 0.6 hours | $4.50 per hour | $2.70 |
The company reported the following results concerning this product in December. |
Originally budgeted output | 6,400 | units |
Actual output | 6,200 | units |
Raw materials used in production | 9,600 | ounces |
Actual direct labor-hours | 3,920 | hours |
Purchases of raw materials | 11,200 | ounces |
Actual price of raw materials | 5.75 | per ounce |
Actual direct labor rate | 11.20 | per hour |
Actual variable overhead rate | 4.20 | per hour |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. |
The materials price variance for December is: |
$19,200 U
$19,200 F
$2,800 F
$2,800 U
Materials Price Variance = (Standard price - Actual price) *Actual quantity
= (6 - 5.75) * 11,200
= 2800 F
Option C is the answer
Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.4 ounces $ 3.00 per ounce $ 16.20 Direct labor 0.5 hours $ 12.00 per hour $ 6.00 Variable overhead 0.5 hours $ 9.00 per hour $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output 4,200 units Actual output 4,200 units Raw materials used in production 20,400 ounces Purchases...
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