Question
22.)Direct materials: Standard quantity (SQ): 3 DM units per finished goods unit. Actual quantity purchased (AQP): 4,000 DM units Actual quantity used (AQU): 3,900 DM
22.)Direct materials:
Standard quantity (SQ): 3 DM units per finished goods unit. Actual quantity purchased (AQP): 4,000 DM units Actual quantity used (AQU): 3,900 DM units Standard price (SP): $12.00 Actual price (AP): $13.10
This firm budgeted 1,000 finished goods units and actually produced 1,200 finished goods units. What are the direct materials variances?
a.DM quantity variance: $10,800 unfavorable DM price variance: $4,400 unfavorable
b.DM quantity variance: $4,800 unfavorable DM price variance: $4,290 unfavorable
c.DM quantity variance: $12,000 unfavorable DM price variance: $4,290 unfavorable
d.DM quantity variance: $3,600 unfavorable DM price variance: $4,400 unfavorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started