Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC, Inc., manufactures a single product. The standard cost sheet for this product reflects the following: Direct material 12 per unit Standard material cost $0.72
ABC, Inc., manufactures a single product. The standard cost sheet for this product reflects the following:
| Direct material | 12 per unit |
| Standard material cost | $0.72 per ounce of material |
In the last quarter, the company manufactured 2,131 units of this product. Below is information related to the preparation of these 2131 units:
| Total materials used in manufacturing | 28129.2 ounces |
| Actual material cost | $0.58 per hour |
REQUIRED: Determine the variation in PRICE of materials. If the variation is favorable the response must be positive (example 100) and if it is unfavorable the response must be negative (example -100). YOU MAY USE TWO DECIMALS IN YOUR ANSWER.
Answer:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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