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A company has the following standards for manufacturing one…
A company has the following standards for manufacturing one unit of its product:•Direct Materials: 60 pounds at $1.50 per pound•Direct Labor: 3 hours at $12 per hour During May, the company had budgeted to produce 1,800 units of its product, but actually only produced 1,650 units. The following data relate to actual outcomes from May:•The company purchased 114,000 pounds of materials for $188,100. They used all 114,000 pounds of materials in production.•Total direct labor cost amounted to $56,265 for the 5,115 direct labor hours incurred during May.What is the company’s direct materials price variance for May?
A company has the following standards for manufacturing one…
Questions
A cоmpаny hаs the fоllоwing stаndards for manufacturing one unit of its product:•Direct Materials: 60 pounds at $1.50 per pound•Direct Labor: 3 hours at $12 per hour During May, the company had budgeted to produce 1,800 units of its product, but actually only produced 1,650 units. The following data relate to actual outcomes from May:•The company purchased 114,000 pounds of materials for $188,100. They used all 114,000 pounds of materials in production.•Total direct labor cost amounted to $56,265 for the 5,115 direct labor hours incurred during May.What is the company’s direct materials price variance for May?
A cоmpаny hаs the fоllоwing stаndards for manufacturing one unit of its product:•Direct Materials: 60 pounds at $1.50 per pound•Direct Labor: 3 hours at $12 per hour During May, the company had budgeted to produce 1,800 units of its product, but actually only produced 1,650 units. The following data relate to actual outcomes from May:•The company purchased 114,000 pounds of materials for $188,100. They used all 114,000 pounds of materials in production.•Total direct labor cost amounted to $56,265 for the 5,115 direct labor hours incurred during May.What is the company’s direct materials price variance for May?
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