Gumchara Corporation reported the following information with respect to the materials required to manufacture amalgam florostats during
Question:
Gumchara Corporation reported the following information with respect to the materials required to manufacture amalgam florostats during the current month:
Standard price per gram of materials . . . . . . . . . . . . . . . . . . . . . . . . $1.25
Standard quantity of materials per amalgam florostat . . . . . . . . . . . 4 grams
Actual materials purchased and used in production . . . . . . . . . . 2,800 grams
Actual amalgam florostats produced during the month . . . . . . . . . . 520 units
Actual cost of materials purchased . . . . . . . . . . . . . . . . . . . . . . . . . . $3,920
Normal monthly output . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550 units
a. Determine Gumchara’s materials price variance.
b. Determine Gumchara’s materials quantity variance.
c. Will Gumchara’s overhead volume variance be favorable or unfavorable? Why?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello