Carina Company produces and sells a product with the following material standards: Quantity -5 liters of...
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Carina Company produces and sells a product with the following material standards: Quantity -5 liters of raw materials per unit Price -P7.00 per liter Actual data on production and material costs for the previous month were gathered follows: Production -3,000 units of product Quantity of materials purchased - 20,000 liters Quantity of materials used - 14,000 liters Price paid for materials purchased - P7.10 per liter Required: a. Determine the total materials cost variance. b. Compute the price and quantity variances: c. Determine the purchase price variance. Carina Company produces and sells a product with the following material standards: Quantity -5 liters of raw materials per unit Price -P7.00 per liter Actual data on production and material costs for the previous month were gathered follows: Production -3,000 units of product Quantity of materials purchased - 20,000 liters Quantity of materials used - 14,000 liters Price paid for materials purchased - P7.10 per liter Required: a. Determine the total materials cost variance. b. Compute the price and quantity variances: c. Determine the purchase price variance.
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To calculate the total materials cost variance price variance and quantity variance well use the fol... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
Posted Date:
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