Playtime Products makes large dollhouses. The standard cost of the carpet used for their construction is $8.40

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Playtime Products makes large dollhouses. The standard cost of the carpet used for their construction is $8.40 per dollhouse (6 square feet @ $1.40 per square foot). During September, Playtime paid $25,140 to purchase carpet, half of which was used to produce dollhouses during that month. Direct materials variances related to the purchase and use of this carpet during September were as follows:

Direct materials price variance = $(2,040) unfavorable Direct materials quantity variance = $210 favorable Required: Compute the following related amounts: (1) the number of square feet of carpet material purchased in September, and (2) the number of dollhouses produced in September.

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Accounting Information For Business Decisions

ISBN: 9780030224294

1st Edition

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley

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